Equilibrium calculations using the element potential method have been used to determine optimum conditions for the gasification of wood pellets and to understand the limitations and influence of preheated gasifying agent on the product gas composition. The calculations were carried out under isobaric (1 atm) and isothermal conditions using cellulose as the waste fuel. For each isothermal case results were obtained for the effect of feed gas composition. Various mixtures of steam/cellulose [mol/mol] and oxygen/steam [mol/mol] were examined to determine conditions for high yields of H-2 and CO at a given temperature. The yield of hydrogen and carbon monoxide with different input feed composition and temperature of the process are therefore considered. The results showed strong effect of temperature on hydrogen and carbon monoxide yield in the gasified product stream. High temperatures resulted in high yields of hydrogen. Pure steam resulted in higher yields of hydrogen than steam-air gasifying agent. The experimental results using a fixed bed reactor showed good trends with the calculated data. These results assist in the design and development of enhanced hydrogen production from steam gasification of wastes.