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Pellet Stoves Vs Wood Stoves Pellet stoves are made of wood pellets, corn or a blend of both to generate heat. A motor-driven auger loads pellets into the combustion chamber, where they are ignited. Most models come with thermostatic controls to keep the fire at your desired temperature. They produce only a small amount of ash and emit very low levels of air particles. Cost When compared to wood stoves that use pellets, they tend to cost less. This is due to the fact that they are less expensive to set up and can be vented through a small hole through the wall. P