Wood pellets are the most common type of Pellet fuels. A form of wood fuel, wood pellets are generally made from compacted sawdust or other wastes from sawmilling and other wood products manufacture. Pellets are manufactured in several types and grades as fuels for electric power plants, homes, and other applications in between. Pellets are extremely dense and can be produced with a low moisture content (below 10%) that allows them to be burned with a very high combustion efficiency.