This report gives an overview of the present supply and use of biomass in Sweden, and trends and prospects for increased use of bioenergy in Sweden are assessed. Biomass contributes about one fifth of the Swedish energy supply. There is a potential for a substantial increase in the Swedish biofuel use, and the Swedish bioenergy potential is large enough to accommodate such an increase. However, for Sweden to become a major supplier of liquid biofuels in EU, Sweden would need to rely on imported bioenergy to a significant extent. The prospects for a large-scale import of biofuels are discussed. The report also discusses uses of biomass as raw material for the production of renewable materials and chemicals. A large interest is addressed to “biorefineries” as an efficient component in the production of both biofuels and materials.