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How to Select an Outdoor Pellet Stove An outdoor pellet stove provides an economical and convenient alternative to traditional fireplaces that burn wood. Installation and maintenance are essential to ensure safe and effective operation. Pellet stoves use an auger to transfer fuel into a burner which is then ignited to produce heat. The exhaust system then vents combustion gases out via pipes. Cost-Effective Heating Pellet stoves provide a low-cost alternative to other heating systems. They m