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Pellet Stoves Vs Wood Stoves Pellet stoves are made of wood pellets, corn or a blend of the two to provide heat. A motor-driven auger is used to load pellets into the combustion chamber, where they are ignited. Most models have thermostatic controls to maintain the fire at a desired temperature. They produce very little ash and emit low levels of outside air particles. Cost Pellet stoves are cheaper than wood stoves. This is due to lower installation fees as well as the fact that they can be vented via a small hole in the wall, which eliminates