Inspired by today's situation in the world and increased pollution of nature, people increasingly begun to consider how to help to reduce pollution. The use of renewable energy is one way to help preserve the environment, so that is the reason to write about the promotion of production and expansion of markets of wood pellets produced from wood waste. The first part of thesis it is discusses about renewable energy and its types. The analysis is about production and demand of pellets. The first part of the elaboration is focused on the global market, the largest producers, the largest consumers and importers worldwide. The second part of the elaboration focuses on the '' internal market '' of the European Union, which is the main part because the thesis is focusing on export from Croatia to the rest of the European Union. And the third part of the elaboration is focused on the production and export of pellets from Croatia. In Croatia, but also in the world there are great changes happening in the market of pellets, but strong growth of demand is also observed in the whole Europe. Many entrepreneurs have noticed these changes in the last few years, and they have opened up a lot of facilities for the production of pellets. In the last decade there are many incentives to expand production but also consumption of pellets, incentives are given by the state but it is also possible to obtain a grant from the European Union. The thesis should facilitate more grants and measures that encourage production and export of pellets. That would make easier to achieve a good precondition for the future of pellet markets and its significant growth. The result of increased production would result in increasing exports and reduced imports, which should lead to a reduction in the Croatian trade deficit, which also is one of the factors of improvement of the Croatian economy.