A method of preparing fuel 
pellets includes the steps of providing a feedstock in the form of agricultural 
hull fibres having a 
moisture content of about 10 to about 16%; and compressing and extruding the agricultural fibre feedstock through a die to obtain fuel 
pellets in the form of small cylinders having a 
diameter of about ⅜ inch to ¾ inch or more, said 
pellets having an ash content of about 1.1% to about 20% by weight and a calorific value of about 7,000 BTUs per pound of fuel on a 
dry basis. The agricultural 
hull fibres may be derived from all 
whole grains and seeds. For example, are comprised of at least one of corn 
bran fibre, 
rye bran fibre; 
oat bran fibre, rice 
bran fibre, soy 
bran fibre, 
canola bran fibre and wheat bran fibre. The method may include the step of pre-treating the agricultural whole grain and seed 
hull fibre feedstock with high temperature steam before being formed into pellets at a sufficient temperature and 
sufficient time to activate 
hemicellulose within the fibre as a binding agent. The method may include the step of mixing the agricultural whole grain and seed hull fibre feedstock with a 
sequestering agent before being formed into pellets for sequestering 
alkali metal vapors and raising the fusion point of the inorganic elements during 
combustion of the pellets. The 
sequestering agent may be 
calcium carbonate added in amounts up to about 0.5% by weight. The pellets contain additives comprised of 
ammonium nitrate, 
calcium, 
manganese, 
magnesium, aluminum, 
barium, iron, 
potassium and amorphous 
silicate, which sequester 
potassium and chlorides and alter the fusion point of the inorganic elements present in the fuel.