The project introduces the concept of a circular economy into the process of producing essential oils from medicinal herbs. During the distillation of medicinal herbs, remaining waste is cooked, partially dried and therefore presents good raw material for further processing, in order to obtain ecological fuel – pellets. By pelleting biomass produced as the by-product during the distillation of medicinal herbs would completely eliminate waste as a category in this production. The final product – the pellet will be used again in the distillation process instead of currently used fuel. The remaining pellets unused in the distillation process will be offered on the free market. Estimated emission reduction is 15,000T CO2 equivalent during the period of 20 years.