The increasing global demand for energy drives extensive consumption of fossil fuels, resulting in excessive CO 2 and greenhouse gas emissions which contribute to environmental pollution and climate change. Projections indicate a 19% increase in energy demand in Ghana and worldwide by 2040, accompanied by a 1.9% rise in CO 2 emissions annually. To address this issue, imperative research and development into alternative fuels are crucial for reducing the reliance on fossil fuels and mitigating their adverse environmental impacts. Exploring renewable resources, devoid of harmful effects on health and the environment, is very essential. The development and utilization of pellet fuels from diverse biomass sources present both opportunities and hurdles faced by current technologies. Pellets have an impressive breakage rate below 1.5%−2.0%, dry base moisture content below 10%−15%, carbon content below 0.5%, nitrogen and sulfur contents both below 0.07%, and ash content below 1.5%, which make them burn at an exceptional combustion efficiency. Biomass pellet fuels have their environmental protection emissions conform to the emission standards set for gas-fired boilers. The standardized nature of biomass pellets makes them more marketable and accessible for use in various energy applications, and they can be made from all kinds of biomass residues or wastes. After the densification process, it solves the environmental pollution of scraps, and it is capable of replacing coal for combustion in boilers and other combustion devices. This paper reviews the local systems for producing and utilizing pellet fuels made from low-density biomass residues in Ghana. The paper critically analyzes the potentials of various biomass resources in Ghana and their utilizations and the major biomass conversion techniques commonly used in Ghana. Furthermore, the paper presents diverse features of the pellet fuel production process comprising biomass feedstock processing before pelletizing, parameters influencing the pelletization process to produce quality pellet fuels, and the properties of pellet fuels in Ghana. The latter part of this paper reviews the major applications of pellet fuels and their economic feasibility in Ghana.