wood pellets are biofuels made from compressed wood fibre and they can be used to generate electricity or for heating applications. they are often produced from mill residues like sawdust and shavings. wood pellets have many parameters that influence how much energy they can produce. these parameters are measured to ensure that they meet the standards set by the pellet fuel institute (pfi) which is used in north america and the european union standard. wood pellets are a less environmentally damaging alternative to fossil fuels due to their renewable nature and lower greenhouse gas emissions. many countries like the united kingdom have introduced policies and incentives to increase the use of clean energy such as wood pellets. this has led to canada becoming the second largest exporter of wood pellets behind the united states. to meet the demand for wood pellets, canadas production of wood pellets has increased. the production process for wood pellets has many steps and there can be with issues with storage and transportation as degradation and energy density issues can occur. this review will collect all relevant literature pertaining to the impacts and components of canada’s wood pellet industry.