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Pellet Stoves For Sale Pellet stoves generate heat by burning solid combustible pellets generally made from sawdust compressed and other wood waste. They may also burn other kinds of biomass fuels like nutshells or corn kernels. Pellet stoves can be a practical alternative to traditional wood stoves. They are simple to use and require only minimal maintenance. Energy Efficiency Pellet stoves are far more efficient in energy than propane or wood stoves, burning up to three times the amount of BTUs per hour. This