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Pellet Stoves Vs Wood Stoves Pellet stoves burn wood pellets, corn or a mixture of the two to provide heat. A motor-driven auger is used to load the pellets into a combustion chamber where they are ignited and heated. The majority of models have thermostatic controls that keep the fire at the temperature you have set. They produce very little ash and emit low levels of outside air particulates. Cost Pellet stoves are cheaper than wood stoves. This is due t