A high-energy water-resistant pellet of at least 75% biomass material such as torrefied wood, whole-tree (white) wood, agricultural waste, flax and the like. and the remainder a binder comprising from about 2% to about 20% by total weight of the pellet. The binder is a two-component system—a plasticizer, such as tall oil pitch, rosin, fatty acid, vegetable oils, animal oils, corn protein and glycerin—preferably from 3% to about 20% of the binder, and lignin from about 80-97% of the binder.