In this study the dominance of diesel oil as heating fuel is, firstly, described. The shift, observed in recent years, towards alternative forms of heating and their advantages are also mentioned.  The definition of biomass and its value as a renewable energy source, as well as its characteristics and the benefits arising from its use are presented. 

The core of the work includes the investigation of the possibility of installing a pellet manufacturing unit in the Georgios Karaiskakis Municipality, Greece. The technical characteristics of the unit and the stages of production are, intitially, described. A feasibility analysis, based on analytical investment cost data and different scenarios of production, is conducted. The results show that the investment is viable and attractive and it could enhance the development perspectives of the area.