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Extensive utilisation of logging residues, straw, and energy crops will lead to short transportation distances and thus low transportation costs. The average distance of transportation of biomass to a large-scale conversion plant, suitable for electricity or methanol production using 300 000 dry tonne biomass yearly, will be about 30 km in Sweden, if the conversion plant is located at the centre of the biomass production area. The estimated Swedish biomass potential of 430 PJ/yr is based on production conditions around 2015, assuming that 30% of the available arable land is used for energy crop production. With present production conditions, resulting in a biomass potential of 220 PJ/yr, the transportation distance is about 42 km. The cost of transporting biomass 30-42 km will be equivalent to 20-25% of the total biomass cost. The total energy efficiency of biomass production and transportation will be 95-97%, where the energy losses from transportation are about 20%. Biomass transportation will contribute less than 10% to the total NOx, CO, and HC emissions from biomass production, transportation, and conversion.