Peat is a process of anaerobic decay/alteration of any organic source.
Sphagnum is a type of moss that is common in temperate and sub-arctic bogs. Others are sedge and ????
It only becomes sphagnum peat after a long period of chemical alteration.
That keeps it from fouling the tank, like fresh, dried sphagnum does.
It can be used as a very poor fuel (except for the exquisite flavor it gives certain distilled grain beverages) and is sort of the first step on the way to becoming coal.
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