One unit of Sardar Patel Renewable Energy Research Institute (SPRERI's) 1.25GJh(-1) capacity open core down draft gasifier burner system, suitable for thermal application was installed at M/s Dinesh Pharmaceutical Pvt. Ltd., Nandesari, for steam generation. Producer gas burner was used in dual fuel mode (60% LDO (light diesel oil) + 40% producer gas). Gasifier consumed 78-80 kg h(-1) of wood, and replaced 40% (201 h(-1)) LDO. The system was tested for a cumulative period of 600 h using sawmill woody waste as feedstock in test runs of 15-18 h. Financial analysis of the gasifier system showed that user could save about Rs. 221.8 per hour by using dual fuel (60% LDO + 40% producer gas) for steam generation. Economic analysis of the system tested in the field indicated the viability of the gasifier-based operation. (c) 2006 Elsevier Ltd. All rights reserved.