Wood chipper and wood chips
Wood chips are similar to wood pellets, in that the movement and handling is more amenable to automation than cord wood, particularly for smaller systems. Wood chips are less expensive than wood pellets and are theoretically more energy efficient than pellets, because less energy is required for manufacturing, processing, and transportation; however, this assumes that they are consumed in an appropriately designed burner, and as of 2008, these are mostly only available in large systems designed for commercial or institutional use, which have been very successful in terms of performance, cost, reliability, and efficiency.
Wood chips are less expensive than cord wood, because the harvesting is faster and more highly automated. Wood chips are of greater supply, partly because all parts of a tree can be chipped, whereas small limbs and branches can require much labor convert to cord wood. Cord wood generally needs to be "seasoned" or "dry" before it can be burned cleanly and efficiently. On the other hand, wood chip systems are typically designed to cleanly and efficiently burn "green chips" with very high moisture content of 43–47% (wet basis).
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