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Pellet Stove Furnace Pellet stoves can be used as a supplemental heating source or, with proper venting, as a primary heating option. They are available in freestanding units as well as fireplace inserts that can give your home the appearance of an old-fashioned wood-burning fireplace. The auger moves the pellets out of the hopper to the combustion chamber, where they are burnt and generate heat. Sensors are used to monitor the fire and adjust the rate of operation to maintain y