Sustainable energy transitions through biomass pelleting: policy levers for carbon neutrality

Biomass pelleting offers a practical pathway for energy-system transformation by converting diverse residues and biochar into standardized, energy-dense fuels that support climate decarbonization. This review critically examines the role of pelleting in supporting industrial decarbonization and rural clean-energy access, with particular emphasis on its technical performance, supply-chain constraints, and policy integration. The analysis synthesizes recent advances in feedstock characterization, densification technologies, and emerging pellet systems, including torrefied, steam-treated, and biochar-enhanced pellets, as well as digitalized process optimization and decentralized production models. The findings indicate that pelleting improves transport efficiency, storage stability, and combustion performance, enabling near-term fossil-fuel substitution through co-firing in existing infrastructure. However, large-scale deployment remains constrained by feedstock variability, logistical inefficiencies, sustainability concerns related to lifecycle emissions and land use, and fragmented policy frameworks. Emerging next-generation systems demonstrate potential to enhance fuel quality, reduce emissions, and enable measurable carbon removal when supported by robust monitoring, reporting, and verification (MRV) approaches. The review further identifies a critical need to align process-level innovations with policy instruments, including sustainability certification, carbon pricing, and renewable energy mandates. It highlights that the effectiveness of biomass pelleting as a carbon-neutral or carbon-negative solution depends on integrated technological, economic, and governance frameworks. Overall, biomass pelleting is positioned as a scalable and system-integrated option, provided that existing technical and policy barriers are addressed through coordinated and evidence-based strategies. Together, these developments position biomass pelleting as a scalable contributor to carbon-neutral and carbon-negative energy systems.