Pellet fuel is a renewable, clean-burning and cost stable domestic & commercial cookingheating alternative. Pellet fuels are heating fuels made from compressing biomass. Agro based pellets are the most common type. these forms of pellets are generally made from compacted agro residue or other wastes from sawmilling and Other woody biomass sources include palm kernel shell, coconut shell, and whole-tree removal or tree tops and branches leftover after logging and which otherwise help replenish soil nutrients.