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Biomass has been an important energy source for mankind since the beginning of civilization. Ligno-cellulosic biomass is the most abundant organic source on earth，with an annual production in the biosphere of about 170 billion metric tons. Taping into the chemical energy of biomass and reclaiming the historically important position for biomassin energy and transportation is imperative to the sustainability of world economy. Forests cover about 9.5％ of the Earths surface，but account for 89.3％ of the total standing biomass and 73 billion metric tons per year or 42.9％ of the total annual biomass production. Reclaiming the status of biomass in terms of the chemical and energy needs in todays environment requires a lot of things to happen. Research and development is required to boost the energy conversion efficiency from forest biomass to industrial and residential energy and commodity chemical requirements.