Use for wood pellets

I have a 40# bag of 100% Redwood pellets that I bought to use in a small Fire Pit, but they don't flame so I won't be using them. I emailed the company and asked if they would compost or break down well-- I was told they would- it was suggested that I could even use them to top dress or mulch--any input on the subject? I'm thinking they could steal nitrogen as they break down- but don't know. Any help is welcome.Thanks- Jo in WA