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Pellet Stoves Vs Wood Stoves Pellet stoves generate heat by burning corn, wood pellets or a combination of both. An auger driven by motors loads pellets into the combustion chamber, where they are ignited. Most models have thermostatic controls that keep the fire at a desired temperature. They produce very little ash and release very low levels of air particles. Cost Pellet stoves are cheaper than wood stoves. This is because of lower installation costs as well as the fact that they can be