A method to assess the energy balance and environmental and economic feasibility of a biomass-based energy supply system is presented. Biomass production, harvesting and transportation are considered together with capital investment and operating costs, for both thermal and cogenerative energy production. The location of plants and the definition of collection basins are optimised according to different criteria and allocation strategies: a district-wide planning vs. an incremental allocation. System performances are also compared under alternative technological choices. A case study in the province of Cremona, a major farming area in Northern Italy, is presented. Biomass exploitation has positive returns in terms of energy produced, emissions avoided and investment payback. (C) 2013 Elsevier Ltd. All rights reserved.