The heating sector (0.05 to 20 MW) is during the coming years facing an increased competition for (bio) fuels and, at the same time, an expanded broadening of the raw material base for fuels. At the same time the demand for availability, efficiency and environmental performance are increasing. This report describes key barriers, knowledge gaps and needs for research, development and demonstration activities identified. Producers of fuels and of combustion equipments as well as users have been identified and their views have been collected through interviews and / or questionnaires. Research and ongoing programs and activities in Sweden are described briefly. The results show great need for knowledge of new fuels in the whole chain from fuel processing to quality assurance, combustion and emission reduction. There is also great need for coordination of resources, clarification of the research structure, increased contact and improved communication and implementation of results. Based on the results a structure, content and funding of a coordinated R & D program with a focus on the heating sector 0,05-20 MW is proposed. Key factors for success are the inclusion of the entire chain fuel-conversion-system/environment, coordination of physical locations for research and development, and overall governance. All three parts basic research, applied research and demonstration should be included.