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Pellet Stoves Vs Wood Stoves Pellet stoves make use of corn, wood pellets or a blend of both to generate heat. A motor-driven auger loads pellets into the combustion chamber, where they are ignited. The majority of models have thermostatic controls to keep the fire at the temperature you have set. They release very little levels of particles of air and produce very little ash. Cost When compared to wood stoves that use pellets, they tend to cost less. This is due to lower installa