Abstract <p>Forest residues have received extensive consideration as energy production biofeedstock due to their wide geographical distribution, lower emissions released into the environment, and high biomass potential. The decomposition features of fuel pellets formed from birch phloem and its composites with the addition of pine needles were studied by methods of thermogravimetric analysis and calorimetry. The characteristic temperature ranges of thermal decomposition of pellets were identified. The rates of mass loss and lower heating values of thermal decomposition under air atmosphere conditions were evaluated. As results have shown, the temperature of ignition is about 250°C for all samples. The combustion process of pellets can be described by several stages which finish up to 700°C. Additionally, the combustion indices of composite compositions were determined to identify the possibility of using such composites as alternative fuels. All the samples except pine needles have comparable values in terms of the ability to ignite, the combustibility and the burn-out characteristics. The investigation of pellet mechanical properties has shown that only samples with small amount of pine needles (up to 7%) in the composite based on birch phloem have excellent performance properties.</p>