This paper presents a GIS-based decision support system for selecting least-cost bioenergy locations when there is a significant variability in biomass farmgate price and when more than one bicenergy plant with a fixed capacity has to be placed in the region. The methodology tackles the resources competition problem between energy facilities through a location-allocation model based on least-cost biomass quantities. Whole system least delivery cost including intermediate bioenergy products is estimated. The methodology is based on a case study where forest wood residues (FWR) from final cuttings (FCs) are used to produce torrefied wood (TVI) in two torrefaction plants (TUs) that supply a gasification unit (GU) in order to produce electricity. The provinces of Navarra, Bizkaia, Gipuzkoa, Alava, La Rioja, Cantabria and Burgos are assessed in order to find the best locations for settling down the TUs and the GU according to biomass availability, FWR and TW marginal delivery costs. (c) 2007 Elsevier Ltd. All rights reserved.