This ongoing LIFTOFF project intends to provide a solution to the problem of local energy demands in agricultural areas by utilizing local bio-fuels, like woodchips and agricultural residues in small and medium size CHP units. In order to achieve this goal, a multi-fuelled fixed bed gasification process with patented dry gas cleaning technology will be scaled up from large laboratory scale (400 kWth) where the process has been previously proven to a 1.5 MWth industrial demo plant. In order to ensure a successful outcome, the up scaling and the component integration need dedicated research and development activities that will be undertaken as part of this project together with the demonstration of the fully developed concept. The research activities also include development of models and tools, which focus on the design of the new LIFTOFF demo plant for woodchips.Three major outcomes are expected. The first one concerns the development and the design of the LIFTOFF principle on wood. The second is the construction and the building of the Danish wood fired CHP. And finally, the complete monitoring of the combined heat and power plant with a detailed feasibility for a second generation to be implemented potentially in Greece on agri-based residues will be carried out.