There is a potential to increase the annual use of biomass in Sweden by 125 TWh between 1994 and 2015. 125 TWh of biomass would satisfy most of the transportation-fuel demand in Sweden in 2015. Even if the biomass is primarily used for heat and electricity production, a significant fraction will be available for transportation-fuel production, if other non-fossil energy sources are utilized for electricity production and/or substantial energy-efficiency improvements are realized. Improved energy efficiency and the use of renewable energy sources will be required in all sectors to achieve CO2 emission reductions greater than 50%.