I was a consultant for a small city that recieved a grant to pelletize waste paper that could be used in their small coal fired power plant. The paper pellets had to be about one inch in diameter and looked like cigars that were broken into chunks. They had to be that size so the pellets would travel through the auger system. I don’t recall what their projected costs were, or projected savings. But the amount of paper removed from the solid waste stream was significant.
The paper pellets had an average BTU rating of about 8000 BTU per pound. Coal is about 12,000 to 16,000 BTU per pound depending on the type. Cord wood is about 8500 BTU per pound, but if the wood is not well seasoned the actual BTU output is about 5000 BTU because of the energy used to convert the moisture content to steam and release the moisture from the wood. Also because pine wood is less density than oak or hickory, it takes more volume to make , for example, 30,000 BTU, than the same energy released by the more dense woods.
Many areas are considering pelletizing paper from the waste stream for conversion to energy. But there is intense competition from the paper recycling industry for the same paper to be reprocessed into green copy paper etc. The end result is determined by how much the expense ratio to the added value ratio compares, and where the market is most efficient..