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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 preexisting fireplaces. They look attractive and provide heat to homes. Pellet stoves produce hot air through the burning of wood waste like shavings and sawdust. They also make use of a fan to force exhaust gases through specially designed venting systems. Cost One of the primary considerations when comparing a wood heater to a pellet stove is the price. Pellet stoves can be