The world is facing a massive energy and environmental challenge. a challenge that is particularly acute for Europe. According to the International Energy Agency. world energy demand is set to increase by more than 50% by 2030; demand for oil alone is expected to grow by 41% during the same period. Oil and gas reserves are increasingly concentrated in a few countries that control them through monopoly companies. The dependence of Europe on imported oil and gas is growing: we import 50% of our energy. and it will be 65% by 2030 if we don’t act. If oil price increases to 100$ per barrel by 2030. the EU annual energy import bill will increase by more than 350€ for every EU citizen. and none of this would bring additional jobs and wealth to Europe. This scenario is not just a threat to the economy: the world emissions of CO2 (which accounts for 75% of all greenhouse gases) will increase by 55% by 2030. while EU emissions are set to increase by 5% during this period. If we let this happen. the results on our environment (climate change) and our way of life will be tremendous. The energy issue is at the very origins of the creation of the EU: the Messina declaration (1955) stated that “the ministers have agreed on the following objectives .... putting more abundant energy at a cheaper price at the disposal of the European economies ...”. In the Communication of 10 January 2007 to the European Parliament and Council entitled "An Energy Policy for Europe". the EC puts forward ambitious projects. with the objectives of sustainability. competitiveness and security of supply. to enable the EU to achieve a 20% reduction of the greenhouse gas emissions by 2020 compared to 1990 levels. The related Council resolution (15 February 2007) completely agrees with EC projects. To meet the above challenges. the EU should increase the level of renewable energy in its overall mix to 20% by 2020. This is a very stringent target: despite having agreed that 12% of our energy mix is renewable by 2010 (Directive 2001/77/EC). we are unlikely to exceed 10%; so we are bound to increase the present level of non-hydro renewables by more than six times the present levels in about 12 years. A very big opportunity for research and technological development is facing us: the EU is in the position to take global leadership in catalysing a new industrial revolution. accelerating the change to low-carbon growth and increasing the amount of local. low emission energy that is produced and used. Today. the cost of renewable energy is. generally speaking. more expensive than “traditional” energy sources. However. the global market for renewable energy is expanding exponentially. and the European Union is already leader in many of these areas (the EU renewable industry accounts for a turnover of 10 billion€ and employs 200.000 people). It is also worth stressing that. given the level of ambition of the targets. the present energy policy of the Commission allows flexibility to Member States: each country should have a legally binding national renewable energy target. but within this they are free to develop the type of renewable energy best suited to their own particular circumstances (renewable electricity. biomass for heating and cooling. biofuels. etc.). This directive implies increased competition in the development of efficient and cost-effective renewable energy systems. especially in the broad and open field of power generation. where the share of renewables is. and is projected to be. higher than for the overall energy consumption. and modern biomass thermo chemical conversion technologies are confronted mainly with wind and hydraulic systems. The share of biomass in the renewable primary energy production has been 66% in 2005 (Renewable Energy Barometer. 2006). In the renewable electricity generation the share of biomass is 16% in 2005. about the same as that of wind. Europe’s will to substitute solid biomass energy consumption (principally wood and wood waste. but also straw. crop harvest residues. vegetal and animal waste) for a part of that of fossil fuel origin is beginning to pay off. Primary solid biomass production (not including renewable solid urban waste) is once again in marked increase with 5.7% growth in 2005 with respect to the year before (+3.196 Mtoe). European electricity production of solid biomass origin is also in marked growth. with a 16.2% increase between 2004 and 2005 (+6.1 TWh. i.e. a total of 44.1 TWh). The EU owes this principally to the development of electricity resulting from CHP (combined heat and power) production.