A method of producing a biomass-based fuel pellet, such as a fuel pellet which includes thermoplastic polymeric material and a substantial amount of cellulosic material, e.g. cellulosic material derived from biomass source(s), is provided. The method commonly includes compressing a feed mixture to form a densified material, where the feed mixture includes about 5 to 15 wt. % of the thermoplastic polymeric material and at least about 75 wt. % cellulosic material. Many embodiments of the fuel pellets are suitable for use in a coal-fired furnace and/or in other industrial boiler applications.