Although almost 15 years have passed since the Kyoto Conference, our country has made little progress in the development of biomass use. Meanwhile, EU countries continue to increase their biomass use, mainly with woody biomass. Woody biomass is supplied piecemeal from the various stages of timber distribution. As woody material is a complex composite of cellulose and lignin, it is difficult and costly to utilize in the same manner as hydrocarbons. Moreover, although the energy sector is looking to develop alternative sources of energy to provide electricity and fuel for transportation, these demands cannot be feasibly fulfilled using woody biomass resources. Therefore, to utilize these resources, it is essential to apply simple, small-scale methods, in accordance with the laws of thermodynamics. For instance, a local market for heat is far more feasible than that for electricity or liquid fuels. In addition, the woody energy market will be more efficient if operated by forest/timber-related sectors. Forest owners and/or farmers will be able to earn more with the sale of heat than with that of wood fuel itself.