The purpose of work was to submit offers and recommendations to reduce the price of heat in Anykščiai town. An assessment of possibilities of the technical-economic use of biofuel was carried out; the most appropriate locations for the installation of the biofuel boiler of the recommended size with regard to the technical, economic and environmental requirements were selected. Financial and economic calculations were performed. The impact of the project on the final price of heat was calculated. The preliminary project implementation schedule was prepared.