The article examines the potential utilization of forest biomass in bioenergy production in Europe, taking into account limiting and developmental factors. The methodology includes a strategic analysis and the use of PEST analysis to evaluate the market for wood biomass. In the context of the current geopolitical situation and the decarbonization goals of the EU, the authors recommend accelerating energy transformation and highlighting forest biomass as an alternative within renewable energy sources. A literature review indicates the need to revise EU assumptions to enable the use of wood for bioenergy production, taking into account the needs of the wood industry. The analysis of economic factors shows competitiveness of forest biomass against coal, yet challenges arise regarding resource availability and competition with other energy sources. Emphasis is placed on the necessity of sustainable forest resource management and technological innovation. In the context of an energy crisis, the article underscores the role of innovation and recycling in alleviating shortages in energy markets. Conclusions highlight the imperative to develop a sustainable energy strategy for forest resource management and engage EU countries in the development of new biofuel and renewable energy sources for energy security and environmental protection.