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Why peat pellets: Because they are simple, environment-friendly and much cheaper or give much more energy for the same money – if you prefer.Peat pellets are produced from raw peat – a decomposed biomass of wood and herbaceous species. Peat bog is like big sink of compost – millions of tons of biomass has been accumulating there for centuries.Peat is widely used as an energy source in Finland – more than 20% of its energy demand is covered by peat. For years peat has not been regarded as serious fuel source because of its higher production costs compared with coal, oil or natural gas. But increasing energy prices in recent years has changed the outlook for peat – it has even become a cheaper energy resource.Traditionally peat is regarded as a high ash fuel. But it is not true in all cases. The peat we use for pellet production has extremely low ash content which is basically found in Baltic’s and Northwest Russia.