Wood, corn and grass pellets are the newest and cheapest pellet fuel being created in Canada and the United States today. There are different grades and qualities that should be looked into before purchase. Moisture plays a major role in all of these types of pellets, along with residue, heat production and costs. Wood Pellets Wood pellets are produced in two different grades; standard and premium and are sold in 20-40lb bags nationwide. Resembling rabbit food, they are a great natural resource that is becoming increasingly popular since they are cheaper than gas, oil and electricity. Corn Pellets Corn pellets are the new wood pellets. The natural source of fuel they provide, offer homeowners and business owners a new solution for heating on a budget. Quality of your corn pellets involve moisture levels and residue levels and should be taken into consideration before buying. These pellets require specific corn burning stoves, unlike wood pellets which can be burned inside almost any appliance with the proper ventilation system. These pellets also give off a sweet aroma to the outdoors, which benefits your neighbors too! Grass Pellets Grass pellets are the newest type of pellets in this market. They are so new, that there isn’t even a specific type of stove capable of handling this high content ash product. There are three major types of grasses being palletized and tested in numerous studies; switch grass, reed canary grass, and miscanthus. Various straws like wheat are too being tested but they’ve still got a long way to go.