The industrial sector faces significant pressure to transition from fossil fuels to renewable energy sources to meet ambitious climate targets. This paper addresses this challenge within the context of Iceland’s asphalt production industry, an energy-intensive process currently reliant on fossil fuels at a plant operated by Colas Iceland. The primary objective is to evaluate the feasibility of replacing Marine Gas Oil (MGO) with locally produced green fuels for heating and drying aggregates. A multi-criteria decision-making framework, the Analytic Hierarchy Process (AHP), is employed to systematically compare five fuel alternatives: biodiesel, hydrogen, methane, wood pellets, and methanol. The evaluation is based on four key criteria identified in collaboration with the industrial partner: fuel availability, cost, infrastructure requirements, and environmental impact from combustion emissions. The AHP analysis, grounded in operational data from Colas, reveals that wood pellets are the most favorable option, primarily driven by their significant cost advantage. Biodiesel and methanol emerge as strong secondary candidates, requiring minimal infrastructure modifications but at a higher price point. This study provides a practical, data-driven methodology for industrial stakeholders to navigate the complexities of green energy transition.