In the present paper the experimental studies of fuel characteristics of rich-in lignin post hydrolysis residues (LHRs) of softwood and wheat straw is described, as well as the processes of these residues granulation aimed at production of prospective fuel for domestic and industrial heating system and specific features of granules combustion are considered. The heat output at LHR wheat straw combustion reached (98%) the corresponding parameter for commercial softwood pellet, but for LHR softwood this parameter is higher by 1.2-1.4 times. The higher SO2 and NOx emissions are the feasibility of enzymatic LHRs burning. Thorough study of chemical structure and functionality, physico-chemical properties and biological activity of LHRs and products of their goal-oriented modifications together with the results of special tests clearly demonstrated the high potentials of LHRs not only as biofuel but as a raw material for novel product manufacturing.