A lot of electrical energy in Serbia was used for heating, mainly for domes- tics. As it is the most expensive source for heating the government announced a National Program of Energy Efficiency with only one aim, to reduce the consumption of electric energy for the heating. One of the contributions to mentioned reduction is production of coal pellets from the fine coal and its use for domestic heating but also for heating of schools, hospitals, military barracks, etc. Annual production of fine coal in Serbia is 300,000 tons. The stacks of fine coal make a lot difficulties to the each mine because of environmental pollution, spontaneous combustion, low price, smaller market, etc. To prevent the difficulties and to give the contribution to National Program of Energy Efficiency researchers from the Department of Mining Engineering, University of Belgrade, designed and realized the project of fine coal pelletizing. This paper describes technical aspect of this project.