Pressing issues such as a growing energy demand and the need for energy diversification, emission reduction, and environmental protection serve as motivation for the utilization of biomass for production of sustainable fuels. However, use of biomass is currently limited due to its high moisture content, relatively low bulk and energy densities, and variability in shape and size, relative to fossil-based fuels such as coal. In recent years, a combination of thermochemical treatment (torrefaction) of biomass and subsequent pelletization has resulted in a renewable fuel that can potentially substitute for coal. However, production of torrefied wood pellets that satisfy fuel quality standards and other logistical requirements typically requires the use of an external binder. Here, we describe the development of a renewable binder from proteinaceous material recovered from specified risk materials (SRM), a negative-value byproduct from the rendering industry. Our binder was developed by co-reacting peptides recovered from hydrolyzed SRM with a polyamidoamine epichlorohydrin (PAE) resin, and then assessed through pelleting trials with a bench-scale continuous operating pelletizer. Torrefied wood pellets generated using peptides-PAE binder at 3% binder level satisfied ISO requirements for durability, higher heating value, and bulk density for TW2a type thermally-treated wood pellets. This proof-of-concept work demonstrates the potential of using an SRM-derived binder to improve the durability of torrefied wood pellets.