Negative environmental effects, diminishing fossil fuel sources and soaring oil prices are some of the pertinent factors militating against the long term usage of fossil fuels. These make the introduction of alternative energy sources an integral part of our global energy plan. On the contrary, established fossil fuel infrastructures, flexibility of fossil fuels and economic gains from the oil sector are a few reasons why there is a global attitude of ‘drill the last drop before developing sustainable alternatives’. There are various energy sources that have little environmental effects and are sustainable (e.g. wind, geothermal, solar, hydro, biomass, e.t.c.), but the potentials they do have when it comes to the major energy utilization forms (heat, electricity and liquid and gaseous fuels) will be a key determinant of how alternative energy sources will be able to match the seemingly invincible presence of fossil fuels. The biomass option is examined in this report considering its potential with respect to heat, electricity and liquid and gaseous fuels market. Factors that may favour or hinder its potential and suitable solutions on how the potential can be increased are also discussed.

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