Adequate heat is one of the prerequisites for human wellbeing; therefore, building insulation is required in places where the outside temperature is not suitable for living. The climate change, with its rising temperatures and longer dry periods, promotes enlargement of the regions with conditions more convenient for hardwood species than for softwood species. Birch (Betula pendula) is the most common hardwood species in Latvia. The aim of this work was to obtain birch fibres from wood residues of plywood production and to form low-density thermal insulation boards. Board formation and production was done in the presence of water; natural binder, fire retardant and fungicide were added in different concentrations. Board properties such as density, transportability or resistance to particulate loss, thermal conductivity and reaction to fire were investigated. This study included thermal insulation boards with the density of 102-120 kg/m3; a strong correlation between density and the binder amount was found. Transportability also improved with the addition of a binder, and 0.1-0.5% of the binder was the most appropriate amount for this purpose. The measured thermal conductivity was in the range of 0.040-0.043 W/(m·K). Fire resistance increased with adding the fire retardant. We concluded that birch fibres are applicable for thermal insulation board production, and it is possible to diversify board properties, changing the amount of different additives.