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Choosing Between a Wood and Pellet Stove Wood and pellet stoves come in a variety of styles that are able to fit into fireplaces already in place. They look attractive and provide heat for homes. Pellet stoves burn wood waste such as sawdust and shavings to produce hot air. A fan is used to push exhaust gasses through specially designed venting system. Cost When considering wood heat stoves against pellet stoves, the cost is a major factor. While pellet stoves are likely to be more expensive in the beginning than