Abstract. The relevance of the work is caused by reorientation of the modern power engineering to use of local low grade fuel resources. Some types of low grade fuels (peat, brown coal, sapropel, wood chips) are considered in this work. Thermotechnical characteristics of the investigated fuels and products of their thermal recycling are determined. Thermal recycling process is accompanied by release of fuel dissociation heat (0.33-3.69 MJ/kg). The results of thermal low grade fuel recycling are solid carbonaceous product (semi-coke) with a calorific value higher in 1.5-7 times than the value of natural fuels; pyrolysis resin with calorific value 29.4-36.8 MJ/kg; combustible gas with calorific value 15.16-19.06 MJ/m3.