Sleepin: On rereading, I see it says that the pellets will be used for biofuel production.
I'm not sure what that means. It could mean anything.
Pellets, themselves, are already a biofuel. They store energy that is released when they are burned. This is fine for processes requiring heat (heating buildings, generating steam to drive turbines).
The statement seems to indicate that the energy released will be used to create another form of biofuel.
This implies that something with more potential energy than the pellets themselves will be converted into a usable form. After all, energy was required to produce the pellets and you expect the potential energy stored in the pellets (the energy that nature gave them) to be greater than the energy expended (by man) to make them.