Abstract: A method of preparing fuel pellets includes the steps of providing a feedstock in the form of agricultural hull fibres. The agricultural hull fibres may be derived from all whole grains and seeds. For example, are comprised of at least one of corn bran, rye bran; oat bran, rice bran, soy bran, canola bran and wheat bran. The method may include the step of mixing the feedstock with a sequestering agent before being formed into pellets for sequestering alkali metal vapors and raising the fusion point of the inorganic elements during combustion of the pellets. The sequestering agent may be calcium carbonate added in amounts up to about 0.5% by weight. The pellets contain additives comprised of ammonium nitrate, calcium, manganese, magnesium, aluminum, barium, iron, potassium and amorphous silicate, which sequester potassium and chlorides.