Biomass is one of the largest primary resources available, and its use results in no net carbon emissions and lower SO
x
and NO
x
. However, the transformation of biomass into fuels is very challenging because of its complex lignocellulosic structure. Although biological processes have been used to convert biomass, they require catalysts which are usually selective and generate low yields of the desired products. Thermochemical routes include gasification, pyrolysis and combustion, all of which are energy‐intensive. Although combustion, through co‐firing of biomass and coal, is the only proven technology, improvements are still needed to reduce environmental impacts. Research is also being conducted to implement sufficient gas mixing in the furnaces, as well as optimization of the furnace design. Because of its greater overall conversion efficiency and proven gasifier performance, gasification is more likely to be commercially viable; however, pyrolysis has great potential to produce liquid fuels as well as value‐added products. Further research is needed to investigate catalytic gasification and pyrolytic processes and the catalytic upgrading of the bio‐oils and gases produced.