Possibilities to expand the park of biofuel-fired boilers in the Mažeikiai district boiler house and install a new biofuel cogeneration plant in this area and, in this way, to reduce the dependence on imported natural gas the prices of which are constantly rising and influence the rapid pace of growth of the prices of heat supplied to customers were assessed. Technical - economic justification of the biofuel cogeneration plant was prepared after the evaluation of mechanisms for promoting the cogeneration plants applied in Lithuania. Pre-design solutions, technical parameters, economic-financial analysis and suggestions on possible ways and conditions of financing the possible construction were provided.