There are multiple systems for the collection, processing, and transport of forest residues for use as a fuel. We compare two systems in use in Sweden to analyze differences in fuel Cost, CO2 emissions, dry-matter loss, and potential for allergic reactions. we compare a bundle system with the traditional Swedish chip system, and then do an in-depth comparison of a Finnish bundle system with the Swedish bundle system. Bundle systems have lower costs, while the allergic reactions do not differ significantly between the systems. The bundle machine is expensive, but results in high productivity and in an overall cost-effective system. The bundle system has higher primary energy use and CO2 emissions, but the lower dry-matter losses in the bundle system chain give CO2 emissions per delivered MWh almost as low as for the chip system. Also, lower dry-matter losses mean that more biomass per hectare can be extracted from the clear-cut area. This leads to a higher possible substitution of fossil fuels per hectare with the bundle system, and that more CO2 emissions from fossil fuel can be avoided per hectare than in the chip system. The Finnish bundle system with its more effective compressing and forwarding is more cost- and energy-effective than the Swedish bundle system, but Swedish bundle systems can be adapted to be more effective in both aspects. (C) 2009 Elsevier Ltd. All rights reserved