Large-scale implementation of wood pellets as a solid biomass fuel represents a change in the energy system that will have both economic and environmental consequences. This article represents a summary of a state of the art conference, which was organised in Sweden in September 2002. The aim was to bring together people to create a network where industry, research, other expertise and decision makers meet to build a strong pellet industry for the future. The sum of the economic, technological and environmental evidence presented at this conference weighs very heavily in favour of the pellet option. (C) 2004 Elsevier Ltd All rights reserved.