I looked seriously about setting up A wood pellet plant 2 years ago using wet wood chip from a log mill. Pulled out about a month before ordering equipment. Due to the supply chain being totaly dependant on fossil fuel and high power requirment to run the Plant. Grinding dry 20mm softwood wood chip to >3mm and pelleting into 6mm takes about 85-100Kwh of electricity. Chipping logs this goes up to 120-140Kwh Drying 50% humidity wood down to 10% using waste wood/bark uses up approx 20-30% of orignal energy in wood. This does not include energy used in loging/forwarding/trucking.
Pelleting ony works as a way for sawmills to get rid of ther waste sawdust if the previously were dumping it.It is a good substatution for oil burners, saves oil for better uses.
Fitting a wood Gassifacation boilet to new house. 91% efficient, air dryed wood (no need for all the processing add can cut the wood myself With chainsaw,an axe if things get bad)