Wood pellets as a renewable energy source are an alternative to fossil fuels. Their use contributes to the quantitative protection of traditional energy resources which are non-renewable and single use. Combustion of pellets has a neutral effect on increasing the concentration of carbon dioxide in the atmosphere. An important environmental aspect of the Life Cycle Assessment of pellets is the energy consumption over its life cycle. The results of this assessment can be helpful in improving environmental management in companies related to the pellet life cycle. They can also be used in the comparative assessment of pellets and other energy carriers in terms of environmental load resulting from energy consumption over the entire life cycle of the analyzed fuels. The work aimed at analyzing and assessing the energy efficiency of using wood pellet taking into account its life cycle. To achieve the purpose of the work, the energy efficiency index calculated as the quotient of energy benefits and energy expenditure incurred at individual stages of the pellet life cycle was used. The results of the analysis indicate that among the studied stages of the pellet life cycle, the highest energy consumption occurs in the phases: pellet use and production. Research shows that the energy benefits expressed in the amount of energy emitted in the form of heat in the pellet combustion process outweigh the energy expenditure being the sum of energy spent in subsequent stages of the pellet life cycle. The obtained results indicate a positive energy balance. The use of pellets for heating purposes allows for the recovery of energy spent throughout its entire life cycle.