**Abstract**

Residual biomass is used for energy purposes, such as producing heat and electricity. The potential raw materials are wheat, oat and barley straw, corn stover from the agricultural industry, and wood chips from forest residuals and the wood industry. In Chile about 10 MM t year<sup>−</sup><sup>1</sup> residues are produced; however, most of these are burned, increasing the greenhouse gas emission. This study evaluated the energy production from the residual biomass in the Araucanía Region of Chile. The optimal location for installing an energy generation plant was determined, according to various conditions, such as the distance from the villages, energy demands, industry location, etc. A multi-criteria evaluation and analytic hierarchy process were performed for determining the optimal location, and a proposal for its installation was created. A total of 19 districts were selected as suitable location that met the requirements for the three scenarios.

**Keywords:** biomass, gasification, combustion, wheat straw, bioenergy, energy production
