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Pellet Stoves - How to Choose the Best Pellet Stoves Pellet stoves are a more efficient alternative to traditional wood stoves. The pellets are made from recycled sawdust that has been dried and compressed. The pellets are heated in a combustion chamber before being fed by an auger. In contrast to traditional wood-burning fireplaces and stoves pellet stoves are much more energy efficient and require less maintenance. They are also more secure than stoves that burn wood. Aesthetics The top pellet stoves are stylish and are a great alternative to wood-burning stove