In order to expand use of forest residue in Ashoro town which has used pellets from forest residue, this study investigated a economic size of pellet plant in the expansion heat recovery systems of forest residue. Especially, we conducted a questionnaire survey for heat use facilities around Ashoro town to clarify demand of pellets that consisted of an average amount of the pellets usage per day, the delivery distance and the acceptable price of pellets as an alternattive fuel. As a result, we clarified the demand of pellets was totally 2,627 t/year, and the number of potential pellet use facilities was12 within the range of the delivery distance of 119km. In addition, in Ashoro town, if the pellet plant size is assumed to be 1800t/y, the expansion heat recovery system was found to be feasible when the price of kerosene rises to 105 yen/L and bunker A rise to 97 yen/L in the future.