Abstract: A system for converting selected commercially or industrially derived waste materials in a generally dry and friable form, into a pelleted fuel product, comprising an input conveyor (10), a primary breaker (11) for breaking and reducing the incoming materials, a levelling drum (38), a magnetic drum (43) for extracting ferrous objects from the stream of materials, a shredder (16) from which shredded, cut and screened materials are directed by an air stream into a collecting bin (18) from which they are fed to a densifier (21) which creates a denser stream of materials to be fed to a pelleting press (22) from which the pelleted fuel product is taken via output conveyor (23).