Abstract: In order to investigate the benefits of wood-pellet fuel application, the energy cost per unit of conventional energy and wood-pellet fuel was analyzed, and operation costs in the typical boilers were analyzed. Results showed that all operation costs of wood-pellet fuel were 32.95% of oil fuel costs, 67.41% of gas fuel costs in civil and industrial boilers. If 10% of water boilers fueled with oil in China were replaced with wood-pellet fuel, the operation cost would reduce 6 billion Yuan per year, or 1.425 billion Yuan per year for gas fuel boilers, and emission of greenhouse gas (CO2) would reduce 4.4 million ton per year. Tremendous economic and environmental benefits would be got by extending application of wood-pellet fuel in tourist areas or big and medium-sized cities.