The energy efficiency and the development of environmentally correct policies are current topics, especially when applied to the industrial sector with the objective of increasing the competitiveness of the enterprises. Portuguese textile dyeing sector, being a major consumer sector of primary energy, needs to adopt measures to improve its competitiveness. Biomass appears to be a viable and preferred alternative energy source for the sector, while simultaneously develops an entire forest industry devoted to the supply of forest solid fuels. This work carries out a comprehensive PEST (political, economic, social and technological) analysis, which analyses Political, Economic, Social and Technological aspects of the replacement of the fossil fuels traditionally used in this sector by biomass, providing a framework of environmental factors that influence the strategic management of the companies. The main advantages are the reduction of external dependence on imported fuel due to the use of an endogenous renewable resource, the creation and preservation of jobs, the increased competitiveness of the sector by reducing energy costs, the use of national technology and the reduction of greenhouse gases emissions. (C) 2015 Elsevier Ltd. All rights reserved.