This study examines the use of woody residues, primarily from forest harvesting or wood products manufacturing operations as a feedstock for direct-combustion bioenergy systems for electrical or thermal power applications. Opportunities for utilizing biomass for energy at several scales, with an emphasis on larger scale electrical power generation at stand-alone facilities, and on smaller scale facilities such as governmental, educational, or other institutional facilities are examined. Barriers that tend to inhibit bioenergy applications, including accessibility, terrain, harvesting costs, and capital costs are identified and an evaluation the role of government as a catalyst in stimulating new technologies and new uses of biomass material is conducted.