The Hungarian renewable energy potential based on biomass. Wood biomass constitutes the large part of the raw material of operating heating plants. A significant part of raw material comes from forestry as firewood and harvesting losses. A lower part stems from short rotation energy plantation (currently only a few thousand hectare energy plantation are in Hungary), and attempts were made to utilize biomass production of non-conventional areas, as well (eg biomass from abandoned land, or located next to line-based facilities). The wood based biomass is utilized by the heating plants mainly as wood chips. This technology proposes more challenges: moisture content decisively influences the fuel value; optimization of moisture content depends on storage; combustion technique respect is important the fraction distribution etc. Our research based on the examination of these factors and the demonstration of the problems of wood chip management.