Post-mining peaty lands were formed as a result of peat extraction on drainage wetlands areas. After peat extraction has finished, the biggest problem is to use these lands for other purposes. This type of soil is very heterogenic, poorly drained, with massive structure and poor contents of nutrients. Thus it is very problematic to grow traditional agricultural crops that have special requirements for soil fertility on those areas. The area of post-mining peaty lands in Belarus alone is about 200 000 hectares. One of the perspective directions of post-mining peaty land use is re-wetting and production of biomass for energy purposes. The goal of our research was to estimate cost of biomass of natural grass and willow wood from short rotation coppice (SRC) plantations which may be used as feedstock for pellet production. The dominant wetland species were common reed, cattail and sedges. SRC plantation was planted on degraded soils. The prime cost of biomass which was produced on the base of natural grass was from 10.4 euro per ton to 13.2 euro per ton, depending on technology. The prime cost of willow biomass was 24.1 euro per ton. Introduction of taxes will increase cost of biomass by approximately 60 %. The calculation of economic efficiency identified that biomass as a feedstock for pellet production on post-peat mining areas may be a profitable direction for peat factory function and providing the sustainable development of local communities. Additional profit may be obtained as a result of saving carbon quotas. The share of CO2 emissions from fossil fuel for grass biomass production is about 2 % from the total volume of CO2 during renewable biomass utilization for energy and for chips production from willow wood - 6 %. The diversification of biomass sources enables to use feedstock for a pellet line in the winter and spring which is in the heating season.