Worldwide energy consumption is projected to grow by 59 % over the next two decades, according to International Energy Outlook 2001 (IEO 2001), released by theUS Energy 2Information Administration (EIA). One half of the projected growth is expected to occur inthe developing nations of Asia (including China, India and South Korea) and in Central and South America, where strong economic growth is likely to spur demand for energy over the forecast period. Renewable energy use is expected to increase by 53 % between 1999 and 2020, but its current 9 % share of total energy consumption is projected to drop to 8 % by 2020. Oil currently accounts for a larger share of world energy consumption than any other energy source and is expected to remain in that position throughout the forecast period. World oil use is projected to increase from 75 million barrels per day in 1999 to 120 million barrels per day in 2020. Biomass resources are potentially the worlds largest renewable energy source – at an annual terrestrial biomass yield of 220 billion oven dry tonnes. Biomass conversion to fuel and chemicals is once again becoming an important alternative to replace oil and coal. Biodiesel from the rape seed oil methylester (RME) produced by farmer cooperatives is about 2000 t RME per year. A large facility of 15000 t RME per year is located at the oil mill at Bruck/Leitha in Austria. RME is excellent substitute for diesel. Already, European countries, mainly France, Italy, Germany and Austria are leading in biodiesel production, nearing 500,000 tons in 1997 out of which 250,000 was produced in France.( Statt, 1998) The production capacity of biodiesel in Germany was fully utilized in1997, the sold quantity amounting to roughly 100,000 t (Groenen,1998). The technologies for producing bio-oil are evolving rapidly with improving process performance , larger yield and better quality products. The challenge is to develop a process technology which can cope with the significant variation in the composition of the raw material. Another line of action is Camelina sativa . This plant was a traditional oilseed in Europe. It is considered a “low input high yield” plant which could enhance the environmental aspect of biodiesel. However, it has a higher Iodine number (160). Carbon dioxide emission is projected to grow from 5.8 billion tonnes carbon equivalent in 1990 to 7.8 billion tonnes in 2010 and 9.8 billion tonnes by 2020. The Kyoto conference agreement last year is not far reaching but indicates the role clean energy sources will play in the future. Biomass is renewable, non pollutant and available world wide as agricultural residues, short rotation forests and crops . Thermochemical conversion using low temperature processes are among the suitable technologies to promote a sustainable and environmentally friendly development. Biomass can play a dual role in greenhouse gas mitigation related to the objectives of the United Nations Framework Convention on Climate Change (UNFCC) i.e. as an energy source to substitute for fossil fuels and as a carbon store