The vital role of the woodWood pellet industry in today's bioeconomy drives its transition towards sustainable and carbon-neutral systems. The current chapter examines recent developments in the wood pelletizationPelletization sector, highlighting innovations in the process and technologies that have contributed to improvements in pellet durability, quality, and energy density. The integration of digitalization techniques in the pelletizationPelletization process has also enabled predictive maintenance and adaptive process control. The environmental perspective emphasizes the importance of sustainable feedstock sourcing, wasteWastes valorization, and emissionEmissions management in the production of pellets. The market dynamics, driven by shifts in international trade and policyPolicies guidelines across various countries, continue to influence the trajectory of the wood pellet industry. The remaining challenges in terms of economic viability and pollutionPollution control can be mitigated through further research, including process optimizationProcess optimization, digitalization, the use of artificial intelligence, and machine learning, among others. The implementation of policy incentives, supply chain optimization, and integrated sustainabilitySustainability assessments may also help reinforce the woodWood pellet industry’s role in achieving carbon neutrality.