Pelleted biomass has a low, uniform moisture content and can be handled and stored cheaply and safely. Pellets can be made of industrial waste, food waste, agricultural residues, energy crops, and virgin lumber. Despite their many desirable attributes, they cannot compete with fossil fuel sources because the process of densifying the biomass and the price of the raw materials make pellet production costly. Leaves collected from street sweeping are generally discarded in landfills, but they can potentially be valorized as a biofuel if they are pelleted. However, the lignin content in leaves is not high enough to ensure the physical stability of the pellets, so they break easily during storage and transportation. In this study, the use of eucalyptus kraft lignin as an additive in tree-leaf pellet production was studied. Results showed that when 2% lignin is added the abrasion resistance can be increased to an acceptable value. Pellets with added lignin fulfilled all requirements of European standards for certification except for ash content. However, as the raw material has no cost, this method can add value or contribute to financing continued sweeping and is an example of a circular economy scenario.