Often seen as the key to unlocking the biomass markets, this is a difficult area. New technology introduces risks that can be difficult to manage.

Biomass may be processed for almost any part of the energy market. Many of the favoured technologies date from earlier wood distillation plants, or are based on coal industry equivalents. This has encouraged the view that plant should be dedicated, and large scale.

In practice, biomass is better suited to local processing where the disadvantages of form, density and moisture can be overcome at an early stage. This enables final energy conversion efficiencies to be raised, and increases the value of biomass fuel. This reduces unnecessary downward pressure on biomass supply costs. Greater margins for producers will encourage greater investment, introduce further innovation, and take biomass technology along a more appropriate development path.