Wood pellets are made of 100% wood sawdust with no additives. The sawdust in pellets is a manufacturing by-product otherwise destined for landfills. Pellet fuel is also a way to divert millions of tons of waste from landfills and turn it into energy. Pellet fuel is also a way to save money on heating bills during a time when fossil fuel costs are at all-time highs, and pellet fuel is a renewable resource, unlike fossil fuels.