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The paper analyses low grade heat recovery problem for modern woodfuel cogeneration plant. The woodfuel flue gas, behind the condensing economizer, still contains a considerable amount of heat, main part of which is the latent one. To recover this low grade heat, the heat pump technology can be used, which is related with additional consumption of energy (electric, mechanical or heat). Another technique that could be applied is a heat regeneration when flue gas heat, mostly latent, is transmitted to air blown towards burning chamber. Therefore, the analysed heat recovery system operates mainly like mass regenerator which contains only blowers that use some electric energy. The regenerator consists of two cyclically operating columns with packing material. Energetic analysis demonstrates that 13% of additional heat can be produced utilizing this low grade heat. The economic valuation shows that investment in a heat recovery system is quite effective; the payback time is about four years.

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