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How to Select an Outdoor Pellet Stove A pellet stove that is outdoors provides an economical and convenient alternative to traditional fireplaces that burn wood. Proper installation and follow-up maintenance will ensure safe and reliable operation. The auger is used to feed the fuel into the burner, where it is ignited and produces heat. The exhaust system vents combustion gases out via pipes. Cost-Effective Heating Pellet stoves are a cost-effective option over other heating sys