Why Grass Pellet Fuel?
There are really two parts to the answer for this question: 
1) Why pelleted biomass fuel, and
2) why grass pellets?
Pelleted fuels have been around for a long time, most commonly in the form of wood pellets, which have gained widespread popularity. Pelleted fuels have the advantage of being easy to handle for transportation and for the consumer. They are clean and can be delivered in small (40lb) bags or in bulk form. Pelleted livestock feeds have been handled in bulk for decades, and bulk delivery of wood pellets is now available in some parts of the country. With bulk biomass fuel delivery, the convenience for the consumer can rival fuel oil.
Another reason to consider pelleted biomass fuels is that the combustion technologies available (stoves, indoor furnaces, and outdoor hydronic water heaters) are very efficient and low emission. Of over 700 indoor wood and pellet stoves certified by the US EPA, pellet stoves were the most efficient and had the lowest emissions (see table). Pelleted biomass burns hot and clean, often with no visible emission. Many outdoor hydronic water heaters (sometimes mistakenly called “boilers”), have efficiencies over 80%.
Source: US EPA Certified Wood Stoves, May 22, 2009
Pelleted biomass has the advantage of being a renewable resource that can produce much less greenhouse gas than fossil fuels. Studies of the lifecycle greenhouse gas production of various fuels (all greenhouse gases emitted from the production to the consumption of the fuel) used for heating show that biomass can reduce greenhouse gas production 80-90% compared to the fossil fuels they replace (Samson and Stamler, 20091).
Another advantage of pelleted biomass is that it is a cheaper heat source than fuel oil. At current biomass pellet prices (Feb. 2010), biomass pellets can be 40-75% of the cost of fuel oil per million BTUs, depending on the price of oil. The Pellet Fuels Institute has an easy to use online fuel cost calculator available at www.pelletheat.org.
Grass pellets have the advantage of being an annually renewable biomass crop which is compatible with the equipment on our Northeast farms. Grass biomass can help keep agricultural open space, and provide another revenue stream for our farms. Grass biomass can be produced, processed, and consumed locally, keeping our energy dollars in the local economy while helping us become independent from foreign oil.
1 Samson and Stamler, 2009; Going Green for Less: Cost Effective Alternative Energy Sources. Available at www.reap-canada.com/library.