Waste-to-energy represents a challenge for the oil palm industry worldwide. Bio-pellet production is an alternative way of adding value to oil palm biomass. This would mean that a product having major energy density becomes more mechanically stable and achieves better performance during combustion. This paper deals with oil palm shell pelleting; using binding agents having up to 25% mass keeping average particle size less than 1mm and moisture content up to 18.7% (d.b.) were evaluated. An experimental factorial design used binding agent mass percentage, milled shell particle size and moisture content as factors. Pellet density response surfaces and durability index were obtained. Pellet performance during thermal-chemical transformation was also evaluated by using thermogravimetry equipment. The results led to technical evaluation of scale-up at industrial production level.