Utilisation of biomass and waste is a sustainable and environmentally friendly way of energy production, which may contribute to the reduction of the greenhouse effect, utilise local resources and improve local employment. Small CHP plants will certainly constitute the most promising route, as they represent the major market perspective in terms of replication. Gasification is the most promising technology if the technical constraints to its spreading, cleaning of the producer gas, is solved. The overall objective of this European project "Biomass Gasification for CHP with Dry Gas Cleaning and Regenerative Heat Recovery" is to develop, integrate and prove a dry gas cleaning system on an existing biomass gasification combined heat and power plant (250 kWth). The innovative idea of this project is a newly developed dry gas cleaning and heat recovery system. The dry gas-cleaning concept produces no wastewater and intends to solve and eliminate the tar problems associated with operation of biomass gasifiers by recirculating the tars back into the gasifier. The project includes the construction and test of the new gas-cleaning unit with an existing CHP gasifier for at least 500 hours. A study is carried out on the behaviour of tar under varying reactor and cooling conditions, and calculation of economical and environmental impact of the process will be realised in order to clarify whether the new gas treatment device used in small CHP gasification unit will be beneficial to replace conventional plants.