We live in the world, where the population rapidly increases, and local municipalities and governments should think about possibilities of providing sustainable development. The building of new constructions demands many resources. At this time when people pay more attention to ecological building and saving energy resources, the research on local resources and their potential use is very topical, especially, when thinking not only of new buildings, but also of the renovation of existing constructions and heat insulation. Therefore, the sustainable use of local resources as thermal insulation materials is innovative. In Latvia, there are quiet many peat and sapropel resources, which can be successfully used to create new innovative products. The aims of the research are to make heat insulation materials and to establish their optimal composition and properties. In this study, we made thermal insulation materials using activated peat, sapropel and wood chips and described their properties in comparison with the industrially produced materials. We tested the optimal composition of products as well as their mechanical, heat insulation and acoustic properties. Results have shown that the obtained materials can be successfully used in constructions as heat insulation materials and elements of constructions. Materials have good thermal insulation capability and stability in our climatic conditions. Parameters of materials and their potential applications can be used to evaluate the development of ecological building and the use of local resources.