Considerable straw resources and the wish for a reduction of the CO2 emission by substitution of fossil fuels with biomass are the basis for a still growing European interest in production of power based on straw or co-firing of straw and fossil fuels. However, straw is an expensive fuel, and 15 years of experience have shown that straw is rather problematic as a fuel for heat- and power production. To obtain reasonable power efficiencies, stable operational and environmental conditions, as well as an acceptable economy, it is important to know more about the characteristics of the straw and straw ash in relation to energy, to develop better firing and combustion technologies, and to optimise the logistics system for gathering and delivery of straw. Compared with the coat firing technology, the extent of research and development within power production based on straw, is modest so far. Political agreements on straw-based power production at big power plant units in Denmark and the UK will during the years to come contribute essentially to a higher degree of know-how on utilisation of straw for energy purposes.