How to Make Wood Pellets: 12 Steps (with Pictures) - wikiHow
Use a hammer mill to reduce the size of the pieces to 5 mm (0.20 in). The hammer mill grinds and chops the smaller pieces into very small particles for making pellets. Turn the hammer mill on and slowly pour the wood chips into the mouth of the machine. Place a container under the mill to catch the small particles as they come out of the machine.