Modern society is dependent on energy use in several ways. Due to environmental and strategic issues, biomass is emerging as an alternative for the diversification of energy sources worldwide. Forest biomass is abundant at Minas Gerais, Southeastern Brazil, but its usage for power generation remains a niche pathway yet to be exploited. The geographical planning of biomass energy production is of the utmost importance to guarantee the distribution of cheap and clean energy. This study presents a GIS-based methodology for prospecting forest biomass power plants in the Minas Gerais state, Brazil. First, applying fuzzy logic, suitable zones for biomass activity were identified by combining various environmental and social factors, along with the State road network infrastructure. For the second step, a location-allocation model was generated, which considered only the most suitable areas for plant development, spatial availability of raw materials, and the existing road network. Various scenarios were simulated with different numbers of bioenergy plants, using a capacitated location-allocation model, in order to consume half of the state forest biomass stock. The best locations and the optimum number of power plants were found by minimizing transport distances of raw material to the factories. This proposed methodology could be adapted for use in other countries.