This study discusses about environmental impacts of straw fired district heat production in a CHP plant, and compares with the alternative fuels natural gas (NG) and imported Wood pellets. The goal and scope of the study is to assess the life cycle impact based on the impact categories: Non-Renewable Energy (NRE) use, Global Warming Potential (GWP)-100 years, Acidification Potential (AP), and aquatic and terrestrial Eutrophication Potential (EP).For every 1 MJ of heat production, straw fired in a CHP and substituting the coal fired power plant as the marginal electricity production, would lead to a GWP at -86.54 g CO2-eq, and NRE use at -1.23 MJ-primary. With the same marginal electricity substitution, AP is 0.008 m2 UES/MJ heat Likewise, aquatic and terrestrial EP are 0.125 g NO3-eq /MJ heat and 0.006 m2 UES/MJ heat respectively. Straw performs better compared to NG and Wood pellets from the standpoint of lower GWP and NRE use, but has higher AP and EP compared to both alternative fuels.