The choice of optimal plant species for phytoremediation and organic fertilization plays an important role in stabilizing the functions of soils contaminated with heavy metals. The influence of nickel, cobalt and cadmium on the biomass yield and calorific value of Festuca rubra, heavy metal concentrations in soil and plants and the microbiological, biochemical and physicochemical proprieties of soil were analyzed in a pot experiment. The tolerance index (TI) describing Festuca rubra’s ability to tolerate heavy metals, as well as the translocation (TF), accumulation (AF) and bioaccumulation (BF) factors of heavy metals in Festuca rubra were calculated. The experiment was conducted in two series: In soil fertilized and not fertilized with compost. Nickel and cobalt significantly inhibited the growth and development of Festuca rubra. The experiment demonstrated that this plant species can be grown on soil contaminated with heavy metals. Festuca rubra contained on average 46.05% C, 34.59% O, 5.91% H, 3.49% N, 0.19% S and 9.76% ash. Festuca rubra has a stable calorific value which is not affected by heavy metals; therefore, biomass harvested from heavy metal-polluted soil can be used for energy generation. The calorific value of Festuca rubra ranged from 15.924 to 16.790 MJ kg−1 plant d.m., and the heat of combustion from 17.696 to 18.576 MJ kg−1. It has a stable calorific value which is not affected by heavy metals, therefore biomass harvested from heavy metal-polluted soil can be used for energy generation. Festuca rubra is particularly useful for the phytostabilization of soil contaminated with cadmium and cobalt. Compost minimizes the adverse effects of heavy metal pollution on the microbiological, biochemical and physicochemical properties of soil.