Biomass has the potential to contribute a significant portion of the e
lectricity consumed in industrialized nations and a major share of the
power mix in developing countries. In addition to providing an altern
ative to fossil-fuel-based energy and creating new markets for agricul
ture, a renewable resource like biomass used in a sustainable fashion
facilitates closure of the carbon cycle. To realize these benefits, pa
rticularly in the shadow of uncertainties cast by deregulation and rec
ent changes in federal energy and agricultural policies, biomass power
systems must be competitive with incumbent power-generation technolog
ies in terms of generation efficiency and overall cost. Anticipated pe
rformance and cost of biomass-based integrated gasification, combined-
cycle power systems are discussed. The electric power that can be gene
rated worldwide using existing biomass resources (primarily crop resid
ues and wastes) and the potential amount that could be generated from
crops grown specifically for electricity generation are projected. Tec
hnical and economic obstacles that must be overcome before advanced bi
omass-power systems based on aeroderivative turbines or fuel cells can
become fully commercial are identified. Research, development, and de
monstration efforts under way or being planned to overcome those obsta
cles are described; developments in a major biomass gasification demon
stration project taking place in Hawaii under the auspices of the U.S.
Department of Energy and the State of Hawaii are detailed.