The most straightforward method of extracting energy from biomass is simple combustion. This can be useful at a local scale, either as a replacement for heat that would otherwise be generated from non-renewable resources, or in combined heat and power (CHP) applications. It is the most likely use of waste materials such as forestry byproduct.

By trapping and burning landfill gas—which contains a high proportion of methane—from a de-commissioned landfill site in Guelph, Ontario, a local electricity utility is producing 2500 KW of energy, while reducing the emission of methane into the atmosphere.

More complex technologies also exist, such as anaerobic digestion to convert a variety of raw materials into biofuels which can be transported to where they are needed.

Ontario has taken steps to promote the use of biomass as a source of energy. The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) offers the Biogas Systems Financial Assistance Program, to encourage the development of anaerobic digesters. Ontario Regulation 232/98 under the Environmental Protection Act requires the collection of landfill gas for new or expanding landfill sites over a certain size, and the Government of Ontario now requires that an average of 5% of gasoline sold in the province be derived from biomass, such as ethanol.

The Ontario Power Authority estimates that an additional 450 MW of energy could be produced by biomass projects in the province by 2027, five times the current and committed capacity.