The availability of energy resources in today's world is becoming an increasingly significant problem. Conflicts and political instability, as well as limited reserves of fossil fuels, further contribute to rising prices and the inaccessibility of fossil energy sources. Part of the solution comes in the form of renewable energy sources and this graduate thesis focuses on the utilization of agricultural biomass. One way of the utilization of agricultural biomass is by generating energy. This not only creates energy but also prevents unnecessary accumulation and environmental pollution from unused agricultural residues. Through the analysis of primary and secondary data this thesis provides an overview of previous projects related to the agricultural biomass utilization. It also identifies the potential quantities of agricultural biomass in specific countries and their primary sources. As an example of best practices that shows the improvement of family farm through the utilization of agricultural residues, the Grivičić family farm is taken as a case study. The Grivičić family, by transitioning from traditional crop production to agro-pellet production, transforms it business in the form of EURO-TIM Ltd., aims to utilize agricultural residues on innovative and environmentally friendly ways and thereby prevent the accumulation of organic biomass in their fields. The business of EURO-TIM d.o.o. is analyzed using cost calculations, while the business performance after the introduction of new practices is measured by indicators (efficiency and profitability), showing the positive effect of introduced changes. After all it could be concluded that the implementation of best practices as demonstrated by the example in this thesis could be an excellent example of how to utilize agricultural residues, prevent the accumulation of organic matter, environmental pollution, generate additional profits for their farm, and have a positive impact on the local community.