New technologies for biomass gasification are being developed which in
crease the potential to cogenerate electricity and may reduce costs co
mpared with steam turbine technology. Cogeneration is a more energy-ef
ficient way to convert biomass into heat and electricity than separate
electricity and heat production. The potential to cogenerate electric
ity in the Swedish district-heating systems is estimated to be 20% of
current electricity production when using combined cycle technology. T
he electricity and heat costs from cogeneration with biomass ate highe
r than the costs from fossil fuel plants at current fuel prices when e
xternal costs are excluded.