Biomass is finding favour in Australia as a source of renewable energy. Biomass energy costs less to produce than most other renewable power sources and the environmental and potential social benefits are substantial, provided the fuel resource is sustainably managed. The feasibility of biomass energy production is being considered by a number of industries and electricity providers. Sugar processors, which already generate power and heat from bagasse, are assessing the potential for expanding their electricity production. Development of the industry is likely to depend on government policy and the development of gasification technology.