Abstract
This study conducted a case study in Atsubetsu area of Sapporp city to investigate improvement of financial and CO2 conditions for a present district heating and cooling system (DHCS) considering increase in heating energy demand capacity and utilization of rice straw as unused biomass. Making it obligatory for new or existing buildings to participate in the DHCS improved financial conditions. Utilization of rice straw led to more spending than natural gas because collection and transportation costs for rice straw are expensive although the DHCS secured financial profit more than it already is. CO2 credit and subsidy for piping systems can cover a part of the cost increased by the utilization of rice straw. Furthermore, future reduction in heat charging might be big incentive for participants to a DHCS.