Fast pyrolysis of biomass is one of the most recent renewable energy processes to have been introduced. It offers the advantages of a liquid product, bio-oil that can be readily stored and transported. Bio-oil is a renewable liquid fuel and can also be used for production of chemicals. Fast pyrolysis has now achieved a commercial success for production of chemicals and is being actively developed for producing liquid fuels. Bio-oils have been successfully tested in engines, turbines, and boilers, and have been upgraded to high-quality hydrocarbon fuels, although at a presently unacceptable energetic and financial cost. The paper critically reviews scientific and technical developments in applications of bio-oil to date and concludes with some suggestions for research and strategic developments.