Integration of biomass into urban energy systems for heat and power. Part I: An MILP based spatial optimization methodology

•MILP tool for optimal sizing and location of heating and CHP plants to serve residential energy demand.•Trade-offs between local vs centralized heat generation, district heating vs natural gas distribution systems.•Assessment of multi-biomass supply chains and biomass to biofuel processing technologies.•Assessment of the key factors influencing the use of biomass and district heating in residential areas.