A system optimisation approach is proposed to design biomass-based district-heating networks in the context of industrial districts, which are one of the main successful productive aspects of Italian industry. Two different perspectives are taken into account, that of utilities and of policy makers, leading to two optimisation models to be further integrated. A mixed integer linear-programming model is developed for a utility company's profit maximisation, while a linear-programming model aims at minimising the balance of greenhouse-gas emissions related to the proposed energy system and the avoided emissions due to the substitution of current fossil-fuel boilers with district-heating connections. To systematically compare their results, a sensitivity analysis is performed with respect to network size in order to identify how the optimal system configuration, in terms of selected boilers to be connected to a multiple energy-source network, may vary in the two cases and to detect possible optimal sizes. Then a factorial analysis is adopted to rank desirable client types under the two perspectives and identify proper marketing strategies. The proposed optimisation approach was applied to the design of a new district-heating network in the chair-manufacturing district of North-Eastern Italy. (c) 2004 Elsevier Ltd. All rights reserved.