Extensive utilisation of logging residues, straw, and energy crops will lead to short transportation distances and thus low transportation costs. The average distance of transportation of biomass to a large-scale conversion slant. suitable for electricitv or methanol uroduction using 300 000 drv tonne biomass vearlv, will be about 30 km in Sweden, if the conversion plant is located at the centre of ihe biomass production area. The estimated Swedish biomass potential of 430 PJ/yr is based on production conditions around 2015, assuming that 30% of the available arable land is used for energy crop production. With present production conditions, resulting in a biomass potential of 220 PJ/yr, the transportation distance is about 42 km. The cost of transporting biomass 30-42 km will be equivalent to 20-25% of the total biomass cost. The total energy efficiency of biomass production and transportation will be 9597%, where the energy losses from transportation are about 20%. Biomass transportation will contribute less than 10% to the total NO,, CO, and HC emissions from biomass production, transportation, and conversion