Forests are an important factor of environmental economics, which implies energy production from renewable resources of forest mass – the biomass.

In the world there is an evermore growing demand for biomass because wood is too valuable as raw material and should be used for some other, higher purposes and not merely like an energy-generating product in the form of biomass – the by-product of forestry (lower-mass fuelwood, small round billets, stockwood and wastewood).

With the Energetics Development Strategy of the Republic of Serbia, the need for organized utilization of renewable energy resources in heating and electric power production has been defined. The priority is to slow down the import rate of energy-generating products through forest biomass utilization and minimizing of negative effects on the environment.

Analysis has proved that 9 people need to be employed in order to operate a heating plant meant for a town of 10,000, in case gas or fuel oil is used as energy-generating product; in case biomass is used, 135 workplaces are ensured, which is extremely important for a steadfast regional development and employment of the local population.