Biomass can be used as a source of energy for facility heating, electric power generation, and combined heat and power. As an energy source, biomass can either be used directly via combustion to produce heat, or indirectly after converting it to various forms of biofuels.
Bio-Energy or Biomass power refers to electricity and heat generated using organics means such as animal, forest, or agricultural waste that would otherwise be dumped in landfills, openly burned, or left as folder for forest fire:
Fast growing trees that provide the bulk of fuel can be used alongside coal in co-firing power plants.
Wood waste: The waste from forest maintenance, other timber industries and other crop residues is commonly transformed into compact fuel pellets.
Community solid waste that previously was destined to landfill is being used to generate both heat and power on a community scale.
Bio-energy is nearly carbon neutral, the essential principle is that it takes carbon out of the atmosphere during growth and returns it when burnt.

Biomass for Electricity Generation:
Biomass can be converted into electric power through several methods:
The most common is direct combustion of biomass material.
Gasification produces a synthesis gas with usable energy content by heating the biomass with less oxygen than needed for complete combustion.
Pyrolysis yields bio-oil by rapidly heating the biomass in the absence of oxygen.
Anaerobic digestion produces a renewable natural gas when organic matter is decomposed by bacteria in the absence of oxygen.

Biomass for Heating Generation:
Biomass is beginning to compete in the domestic market alongside gas and oil as a fuel.
Small scale domestic biomass heating:
Wood chip fuel boilers, wood pellet boilers are more like conventional boilers including self-igniting and self-regulating. They are also more efficient, typically burning at up to 94% efficiency.
Wood chips tend to have variable quality, fuel reception design is key and can be expensive, fuel does not flow and is difficult to handle.
Wood pellet they are usually made from compressed sawdust and wood shavings but can be made from most biomass material (straw, forestry residues and specially grown energy crops). Pellets are usually produced at an industrial scale. Pellets quality varies according to source. Pellets are more expensive than wood chip / logs. Fuel storage is generally simpler and cheaper than for other wood fuels, pellets ‘flow’ in simple delivery to combustion.