The objective of the paper was to determine the costs of production and production effectiveness of pellets made of sawdust and characteristics of logistics of raw material carriage and distribution of pellets. The scope of the paper covered the research carried out in the branch of DREWEX company located in Chotelek town (Świętokrzyskie voivodeship, Province of Busko Zdrój). Unit costs of pellets production were: 513.4 PLN∙t−1 for option 1, 423.3 PLN∙t−1 for option 2 and 393.3 PLN∙t−1 for option 3. The most favourable was option 3 when the pellets were produced on the technology line in the 3-shift system day and night. The average distance to seven cities from which sawdust was delivered was 43.6 km and the distance to which production was distributed to ten cities was on average 105.5 km.