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Pellet Stoves Used For Sale Pellet stoves burn pellets, a compressed sawdust-like fuel. They burn more cleanly than wood stoves and produce less creosote which poses a fire hazard. Smart models have sensors that measure the temperature of the room, and then adjust flames automatically in order to maintain your desired temperature. They also notify you of the need to refill or clean. Cost Pellet stoves utilize biomass as their fuel source, which can help reduce your energy bill