This study quantifies emissions of hydrocarbon terpenes from the drying of sawdust in packed moving bed dryers, through the production chain to the finished pellets, and determines the parameters suitable for emission control. The terpene content in softwood sawdust and pellets was analyzed using gas chromatography. The distribution of VOC emissions over the bed was measured with a flame ionization detector. After drying, 30-40% of the initial terpenes remain in the wood, 20-30% remain after grinding, and 10-15% remain after pelleting. Dryer emissions correlate with residence time and final sawdust moisture content. Pellet press emissions correlate with pellet moisture content.