The biomass exploitation takes advantage of the agricultural, forest, and manure residues and in-extent, urban and industrial wastes, which under controlled burning conditions, can generate heat and electricity, with limited environmental impacts. Biomass can - significantly - contribute in the energy supplying system, if the engineers will adopt the necessary design changes to the traditional systems and become more familiar with the design details of the biomass heating systems. The aim of this paper is to present a methodology of the design of biomass district heating systems taking into consideration the optimum design of building structure and urban settlement around the plant. The essential energy parameters are presented for the size calculations of a biomass burning-district heating system, as well as for the environmental (i.e. Greenhouse Gas Emissions) and economic evaluation (i.e. selectivity and viability of the relevant investment). Emphasis has been placed upon the technical parameters of the biomass system, the economic details of the boiler, the heating distribution network, the heat exchanger and the Greenhouse Gas Emissions. (C) 2008 Elsevier Ltd. All rights reserved.