The pellet manufacturing process can be broken down into 6 stages. These stages are discussed below.

1. The first step involves the collection of raw material and bringing it into the mill. These raw material include saw dust, wood chippings, and any other form of biomass that can be used in making pellets.
2. Using a hammer mills, the raw material is crushed into uniform fiber sizes. This is particularly so for large pieces of wood that may need to be crushed to a more reasonable size that can be pelletized.
3. After crushing, the resulting fibers need to be injected with moisture, which is necessary for the pelletization process. A steam machine is used in this process.
4. The raw material is then fed into a pellet press or pellet-making machine, which compresses the fibers against a die, to form the pellets. The machine uses high pressure, heat, and friction to form the pellets.
5. The pellets are then taken from the pellet press and chilled.
6. The final step involves the inspection of the pellets for any loose dirt, and those that are up to the required standard are sprayed with hot air to remove dirt particles. These may then be packaged for shipping.