The objective of this study is to perform a techno-economic analysis on a typical wood pellet and wood residue boiler for generation of heat to an average-sized greenhouse in British Columbia. The variables analyzed included greenhouse size and structure, boiler efficiency, fuel types, and source of carbon dioxide (CO(2)) for crop fertilization. The net present value (NPV) show that installing a wood pellet or a wood residue boiler to provide 40% of the annual heat demand is more economical than using a natural gas boiler to provide all the heat at a discount rate of 10%. For an assumed lifespan of 25 years, a wood pellet boiler system could generate NPV of C$259,311 without electrostatic precipitator (ESP) and C$74,695 with ESP, respectively. While, installing a wood residue boiler with or without an ESP could provide NPV of C$919,922 or C$1,104,538, respectively. Using a wood biomass boiler could also eliminate over 3000 tonne CO(2) equivalents of greenhouse gases annually. Wood biomass combustion generates more particulate matters than natural gas combustion. However, an advanced emission control system could significantly reduce particulate matters emission from wood biomass combustion which would bring the particulate emission to a relatively similar level as for natural gas. (C) 2008 Elsevier Ltd. All rights reserved.