Mitigating the effects of climate change has lead to an increasing use of biofuels in Denmark, including fuelwood from the forests. This has raised concern about the future supply of fuelwood. This paper presents a method for estimating potential fuelwood resources from forests larger than 0.5 ha based on national forest inventory data. The first part of the study addresses the assessment of potential fuelwood resources, whilst the second part focuses on the estimation of the economically available resource. For the latter, locality data are extracted from the biomass assessment and coupled with data on location of conversion facilities and projected consumption. The data is incorporated into an economic model based on GIS to form industrial marginal cost-of-supply curves from an optimisation of the allocation of fuelwood using LP. Economically available fuelwood resources are estimated using a substitution delivery cost of E 1200 TJ(-1). Depending on the supply scenario, the results indicate that the national potential fuelwood resource is sufficient to meet 70-150% of the projected consumption and that the resource is not expected to decline significantly in the next three decades. The estimation of economically available fuelwood resources shows that the resources meet only 57-100% of the projected consumption, even when the cost-of-delivery curves are based on the optimal allocation of the fuelwood resource to the conversion facilities. (C) 2004 Elsevier Ltd. All rights reserved.