Wood pellets are an economic, sustainable, and environmentally friendly alternative to the fossil fuels available. Both new and residual wood is used to supply the pellet production, and new raw material resources are constantly being developed. As well as residual wood, scrap wood such as tree tops and thinner trunks are readily used in pellet production. In the near future, the growing of energy-rich woods on fallow agricultural areas could provide even more resources for pellet production in many countries.