Djibouti has limited natural resources and is struggling with an ongoing drought. It is also dealing with a protracted refugee crisis, with more than 23 000 refugees living in the country. Domestic energy is a major challenge for the refugees: they use Prosopis fuelwood, which is collected at small-scale production sites more than 150 km from refugee camps. There is an urgent need to improve the planning of woodfuel supply, assess fuel quality, and increase the efficiency of woodfuel delivery and use in the refugee camps. This report assesses the challenges in meeting energy demand in displacement settings in Djibouti. It presents data on the distribution of Prosopis in the country and analyses the economic potential of processing Prosopis woody biomass into briquettes and charcoal. It finds, among other things, that the production of briquettes from Prosopis biomass would be a cost-effective option for meeting cooking-energy needs for refugees and host communities in Djibouti.