This paper reports the commercial-scale (1080 MJ h(-1)) development of a gasification system using low-density biomass, for thermal applications. The gasifier can handle fuels such as sugarcane leaves and bagasse, bajra stalks, sweet sorghum stalks and bagasse etc. The system was tested for > 700 h under laboratory conditions at 288-1080 MJ h(-1) output levels. The HI-IV of the gas was 3.56-4.82 MJ m(-3) (sp.). The system also produces char, similar to 24wt% of the original fuel. Tt can be briquetted to form an excellent fuel for wood stoves or can be used as a soil conditioner. After successful laboratory trial, the system was also rested at a metallurgical company, where it was retrofitted to an oil-fired furnace for baking speciality ceramics. The furnace was operated exclusively on the gasification system and the product quality was on a par with, if not better than, that obtained during oil-fired operation. The economics of the system are also presented.