Energy efficiency securing has become one of the biggest problems nowadays. Increasing energy efficiency of buildings allows not only saving energy resource, but also affects the indoor climate. According to huge amount of energy non-effective buildings and principles of ecological building, which require using of local effective materials and raw materials, we used peat and woodworking by-products to produce effective ecological thermal insulating material. Latvian thermal insulation materials market is represented with by the foreign materials, where as a binder are used different non-ecological materials. Peat is one form the widespreaded ecological products. Thermo-mechanical activation of peat allows getting ecological binder for local insulating materials.