Collect clean, dry wood waste such as sawdust, wood chips, or shavings
Remove contaminants like bark, dirt, metal, paint, and plastic
Reduce the wood material to a fine, uniform size
Dry the material to a low moisture content
Feed the dried material into a pellet mill
Compress the material through a die to form pellets
Cut the extruded pellets to the desired length
Cool the pellets to harden and stabilize them
Screen out fines and broken pellets
Package and store the finished pellets in a dry place