I've seen promotion of wool pellets (and also mats of felted wool, and fleece in general) for
gardening use in part as a peat moss alternative. There's lots of wool that goes to waste from sheep bred more for meat and
dairy purposes, and the dirtiest parts of any sheep. The wool pellets are a particularly good use of the dirty bits (extra nutrients from plant matter and sheep
poop) and get heat treated as part of the process to kill any weed seeds and pathogens.
Some Canadian producers are linked here:
https://www.canadianwool.org/general-6-1
You can get low grade sheep fleeces for free or cheap if you can pick it up from a sheep farmer - sometimes they resort to burning them. Or if you know someone who spins (or felts) and starts with raw fleeces you could ask them to save the bits that they "skirt" out.