The analysis and overview of the current condition of the heat sector of Utena town was carried out by determining the main technical - economic performance indicators. Reconstruction option of the Utena district boiler house when the gas boiler wass replaced by an effective biofuel steam boiler was analysed. The business plan provides market analysis, investment and investment plan, analysis of financial flows and risks, economic payback calculations. Investments was coordinated with the National Commission for Energy Control and Prices, a draft application for funding from the Lithuanian Business Support Agency is prepared. The project received financial support.