Pellet Stove Fireplace Pellet stove fireplaces are freestanding models or are placed in existing chimneys burning wood and give new life to old drafty fireplaces. Pellet stove fireplaces function by using a thermometer to determine the room temperature. They then pour the pellets into the fire according to the rate. https://www.fireplacesandstove.com/products/us-stove-5040-compact-pellet-stove