NOVELTY - The method comprises: storing and mixing (a) a biomass; dewatering (b) the biomass from liquid and pasty substances, up to a residual moisture of 30-60%; optionally adding (c) other biomass; crushing (d) the biomass on an average fiber length of 10-20 mm; washing, cleaning and mixing (e) the crushed biomass, separating contaminants; heating the Biomass at a temperature of 100 degrees C; and drying the biomass up to a predetermined residual moisture. The method further comprises: storing and stirring the dried biomass for buffering and material provision; and grinding the dried biomass.    USE - The method is useful for producing compressed fuel using biomass such as agricultural, forestry and plant trade and other biological wastes, where the dried biomass is useful for generating thermal and electrical power (all claimed).    ADVANTAGE - The method ensures effective and economical production of the fuel with high quality and without contamination.    DETAILED DESCRIPTION - The method comprises: storing and mixing (a) a biomass; dewatering (b) the biomass from liquid and pasty substances, up to a residual moisture of 30-60%; optionally adding (c) other biomass; crushing (d) the biomass on an average fiber length of 10-20 mm; washing, cleaning and mixing (e) the crushed biomass, separating contaminants; heating the biomass at a temperature of 100 degrees C; and drying the biomass up to a predetermined residual moisture. The method further comprises: storing and stirring the dried biomass for buffering and material provision; grinding the dried biomass to an average grain size of 4 mm; pressing, compacting, stamping and/or compressing the dried biomass for preparing compressed molded pieces; drying and cooling the biomass with an outlet temperature of 10-15 K over ambient temperature; transporting the compressed molded pieces; and dry storing the compressed molded pieces. The step of optionally adding other biomass is carried out by consumed organic stall bedding, biological waste from agriculture-, forestry-, garden-, park- and cemetery wastes and other biological wastes. The dried biomass is further processed to an insulating material, fuel or components. An INDEPENDENT CLAIM is included for a plant for producing compressed fuel using biomass.    DESCRIPTION OF DRAWING(S) - The diagram shows a schematic view of a method for utilizing biomass.    Storing and mixing a biomass (a)    Dewatering the biomass, recovery of liquid and pasty substances (b)    Optionally adding other biomass (c)    Crushing the biomass on a middle fiber length of 10-20 mm (d)    Washing, cleaning and mixing the crushed biomass. (e)