Biomass is a suitable alternative to be used as fuel, but the use of biomass without prior processing can cause respiratory disease. In Indragiri Hilir Regency, the utilization of palm fruit skin waste is still minimal. Bio-pellet is a fuel derived from biomass waste that has gone through a densification process. The process of making bio-pellets is carried out by refining the raw materials, mixing the adhesives, printing the raw materials that are pressed under high pressure, and drying. The results of the research on the bio-pellet characteristic test of Nipah fruit peel waste according to its parameters obtained an average value of 1.28% water content, 0.51% ash content, 21.3% flying substance content, 76.88% bound carbon content and weight. type 1.41 gr / cm3. For the combustion test in the updraft type gasification furnace with the addition of 0.5kg, 0.3kg and 0.2kg of fuel, the results obtained from the rate of fuel consumption are 0.041kg / minute, 0.033kg / minute and 0.033kg respectively. /minute. In the results of combustion efficiency, the value according to SNI 7926: 2013 is the addition of 0.5kg of fuel at the beginning of ignition and 0.2 kg at the end of ignition, which is 0.04.