Wood waste is, by far, the largest portion of the waste stream generated from wood working Industry. Almost everyone in the woodworking business has a problem with wood scrap, chips and sawdust occurring as a by-product of woodworking. From the mill to the finished product, this offal represents an impressive amount, approximately 50 percent and is usually categorized as waste. Piles of wood waste can be quickly turned into piles of savings and profits with the proper wood waste disposal system. Wood waste generated at residential and commercial wood frame construction sites offers a greater potential for reuse due to the ease of separating the wood during the various stages of construction. Cut-offs and scraps generated during the framing and trimming stages constitute a relatively clean and homogeneous waste steam that can make an excellent feedstock for engineered wood production. This type of wood waste represents a highly desirable form of wood waste that processors are eager to obtain. Hence all these alternatives can save money in avoided disposal fees and potentially generate income from the sale of salvageable materials. Shavings and sawdust may be reground into wood flours, or the wood flour may be recovered as sized dust materials that have been screened and separated. Wood flour has major industrial markets in industrial fillers, binders and extenders in industrial products like epoxy resins, fertilizers, adhesives, absorbent materials, felt roofing, inert explosive components, ceramics, floor tiles, cleaning products, wood fillers, caulks and putties, soil extenders and a vast array of plastics. Some wood flours like mesquite may be used in edible flavorings for human or pet consumption. Wood/sawdust chip block are generally used as packing components. They are also used as the feet of wooden pallet in packaging. Wood-fired systems using sawdust, shavings or shop-produced wood waste account for 88 percent of power production, with landfill gas accounting for 8 percent, agricultural waste 3 percent and anaerobic digesters 1 percent of power production (NREL data). Some power companies co fire biomass with coal to save fuel costs and earn emissions credits. Using wood waste or other biomass in the fuel mix enhances their competitiveness in the market place. Added to decreased production and less supply to meet what had been the demand, there has been increasing demand for sawdust from the bio energy sector as more consumers are incorporating pellet stoves and pellet fueled hot-water boilers into their homes. This has led to increasing numbers of wood pellet producers, especially in the northern and northeastern states. The increased demand for sawdust and increased price for the commodity has primarily impacted livestock producers, particularly dairy farmers and hog producers who use sawdust as part of a composting system for decomposing quarantined carcasses. There is a very good demand and market potential for this product.