Forests are principal global economic as well as ecological resource. Wood biomass involves trees with commercial structure and forest residues not being used in the traditional forest products industries. Available forest residues may appear to be an attractive fuel source. Forest residues are parts of trees such as branches, small-diameter wood, stumps and dead wood as well as undergrowth and low-value species. Principal sources of waste wood are two waste streams: municipal solid waste and construction and demolition waste. The most limiting factors for using of wood waste as fuel for power generation are transportation costs and its energy content.