Wood Pellets for Heating: Efficiency, Cost, and CO₂ Compared

Wood pellets deliver ~4.8 kWh per kilogram and burn in modern boilers at 90–95% efficiency. That combination makes them one of the cheapest low-carbon heating fuels in Europe and North America.

Cost per useful kWh

With bulk pellets at €280/tonne and a 92% efficient boiler, the effective cost is about €0.063 per useful kWh — typically cheaper than heating oil and grid electricity, and competitive with natural gas depending on region.

Carbon footprint

Certified pellets are near-carbon-neutral: the CO₂ released during combustion equals what the tree absorbed while growing. Lifecycle emissions (harvest, drying, transport) are usually 20–40 g CO₂ per kWh — an order of magnitude below fossil fuels.

System requirements

Residential systems need a hopper or bulk silo, an auger feed, and annual ash removal. Commercial installations add automated ash extraction and larger storage for delivery in bulk truck loads.