The Municipality of Kichevo is located in the western part of the Republic of Macedonia, in a valley in the south-eastern slopes of Mount Bistra. The whole region is predominantly covered with forests and there are also fertile agricultural areas within the Kichevo valley. In addition, the existing biomass feedstock mainly consists of forest biomass, stockbreeding residue, and solid municipal waste. The firewood is being used in rural schools as well as in residences. Also, a sawmill is situated close to Kichevo and the residues from the wood-processing are estimated to be circa 200 kg per day, or around 4 t per month, during the full activity. The leitmotifs for joining this project are the huge energy consumption per capita and the high level of environmental pollution. Besides, there is a great potential for initiative realization, i.e. for energy savings and production of clean energy.