In this study, energy utilization of biomass is introduced with a short description of renewable energy sources and utilization possibilities of biomass. Presently, the necessity of renewable energy sources is increasingly obvious. Among renewables, energy from biomass is to be highlighted, since this allows versatile, cheap utilization of the sun’s energy. In this respect, Hungary has advantages. Direct heat utilization and biogas production are available procedures today, whereas biodiesel and bioethanol are expected to spread in the near future. Biogas production is possibly the most versatile method for biomass conversion: it can produce energy from materials inapplicable for other utilization; at the same time, it is capable of neutralizing harmful wastes; in the end, it produces also valuable fermentative products, from bio-manure useful in agriculture, to pharmaceutical raw materials.