Pellet Stoves Small A pellet stove uses wood pellets that are compressed and stored in an enormous hopper to produce heat. This type of heater is used to complement or replace home heating. This is a more environmentally friendly alternative than traditional fuel sources such as gas or fuel oil. https://www.fireplacesandstove.com/products/comfortbilt-hp21-black-pellet-stove-heats-2-400-ft2