Pellets are a solid biomass fuel, mainly produced from wood residues but also from agricultural by-products such as straw. They have a cylindrical form with a diameter of 6 – 12 mm. Specific advantages of pellets as compared to un- processed biomass include: standardized properties, high energy content, high density and therefore reduced costs for transport, storage and handling. Pellets are used for residential heating in pellet stoves and pellet boilers, for the gene- ration of heat, steam and electricity in the service industry, manufacturing and power generation. Main pellet producing regions in 2014 are Europe and North America. WBA expects a strong growth in the pellets consumption in Europe, North America and Asia.