The report is primarily intended to support courses for undergraduates in agricultural engineering, but is also intended for a wider use among advisers in agriculture and forestry, farmers, house owners etc. The report consists of two sections. The first part considers energy management, energy conservation and estimation of energy and power requirements of buildings. In addition, combustion, furnaces and heat distribution are considered. The second part deals with production and utilization of biofuels, for instance wood, forest residues, salix, straw, energy grass, cereals, biogas and peat. Finally, economic and market aspects are discussed.