When chips are piled in cones or steep windrows, decomposition will cause them to heat up and expel moisture. That must be done under a roof though so that rain doesn't get it. This is not ideal for chip drying but there is no choice with wood chipped green. Chips must be below 35% moisture to be stored in the winter. Wet chips will freeze together and not flow through a system.
Seasoning logs or sawmill slabs for a year or two is best best if they're chipped. Again chips must be stored inside. This is why chips won't work for small heat loads: the fuel handling and processing system is too expensive.
Additionally, hand fed chippers won't regulate chip size, you have to screen out the long pieces and twigs to avoid boiler auger jams.
There are other ways to burn wood but if you want to avoid smoke and pollution, care must be taken to plan for dry fuel and two stage combustion (the opposite of outdoor wood boilers).
Thanks for the info, I was wondering if a hand fed chipper would suffice for chip size.

