Increased interest in the development of renewable energy technologies has been hencouraged by the introduction of legislative measures in Europe to reduce CO2 emissions from power generation in response to the potential threat of global warming. Of these technologies, biomass-firing represents a high priority because of the modest risk involved and the availability of waste biomass in many countries. Options based on farmed biomass are also under development. This paper reviews the challenges facing these technologies if they are to be cost competitive while delivering the supposed environmental benefits. In particular, it focuses on the use of biomass in gasification-based systems using gas turbines to deliver increased efficiencies. Results from recent studies in a European programme are presented. For these technologies to be successful, an optimal balance has to be achieved between the high cost of cleaning fuel gases, the reliability of the gas turbine and the fuel flexibility of the overall system. Such optimisation is necessary on a case-by-case basis, as local considerations can play a significant part.