We have studied the feasibility of building a biomass gasification plant with an innovative spouted bed reactor for distributed energy production. The process was simulated using a thermodynamic approach (concentrated parameter model) using LIBPF, a C++ process modelling library. A nominal size of about 100 kW total thermal power was chosen. Fifteen chemical species were taken into account (dry and ash-free (daf) biomass, C, CH4, CO, CO2, H-2, H2O, N-2, NH3, O-2, methanol, ethylene, phenol, naphthalene and ash). After preliminary simulation trials and unit operation sizing, a proper plant configuration was developed. The air ER (equivalent ratio), syngas condensate recycling and biomass moisture fraction were studied in compliance with the constraint of the gas flow required for a stable spouting regime (120 m(3)/h) and optimal gasification temperature (930 degrees C). A working condition map was obtained in terms of air ER and syngas condensate recycling for different biomass moisture fractions and the main plant performance parameters were studied. The net electrical yield was found to vary from the ideal maximum of 25% to a minimum of about 17% and the heat cogeneration yield was found to vary in the range 45-48% for all the process conditions studied. (c) 2012 The Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.