Abstract: A fuel pellet comprises from about 97 to about 99 percent by weight naturally occurring combustible material of which at least 50 percent is natural cellulosic material and from about 1 to about 3 percent by weight synthetic polymeric thermoplastic material. Any balance of the naturally occurring combustible material is filler and is preferably selected from bark, stillage, byproducts of distillation processes, and coal. If old bark, stillage, or byproducts, such as tar and pitch, or coal are used, the amount of the material is limited to 30 percent. The free moisture content of the naturally occurring combustible material is from about 5 percent to about 15 percent by weight, with 10 to 13 being preferred and 10.5 to 11.5 percent being ideal. Substantially all the thermoplastic material is finer than 30 mesh and coarser than 80 mesh.