The worldwide use of biomass has increased drastically during the last decade. At Swedish sawmills about half of the entering timber becomes lumber, with the remainder considered as by-product (biomass). A significant part of this biomass is used for internal heat production, mainly for forced drying of lumber in drying kilns. Large heat losses in kilns arise due to difficulties in recovering evaporative heat in moist air at low temperatures. This paper addresses the impact of available state-of-the-art technologies of heat recycling on the most common drying schemes used in Swedish sawmills. Simulations of different technologies were performed on an hourly basis to compare the heat and electricity demand with the different technologies. This was executed for a total sawmill and finally to the national level to assess the potential effects upon energy efficiency and biomass consumption. Since some techniques produce a surplus of heat the comparison has to include the whole sawmill. The impact on a national level shows the potential of the different investigated techniques. The results show that if air heat exchangers were introduced across all sawmills in Sweden, the heat demand would decrease by 0.3 TWh/year. The mechanical heat pump technology would decrease the heat demand by 5.6 TWh/year and would also produce a surplus for external heat sinks, though electricity demand would increase by 1 TWh/year. The open absorption system decreases the heat demand by 3.4 TWh/year on a national level, though at the same time there is a moderate increase in electricity demand of 0.05 TWh/year. Introducing actual energy prices in Sweden gives an annual profit (investment cost excluded) on national level for the open absorption system of almost 580 million SEK. For the mechanical heat pump technology the profit is 204 million SEK and for the traditional heat exchanger the profit is significant lower. It has been found that a widespread implementation of available energy recovery technologies across Swedish sawmills would result in substantial savings of biomass for other purposes in the society. (C) 2013 Elsevier Ltd. All rights reserved.