Some of the barriers to the economic use of cereal straw are uncertainty in its i availability; straw quality; cost of collection, transport, and storage; and location of the straw. [...] In the medium term, the addition of forestry and agricultural residues will provide the most important portion of biomass and significantly increase the potential for fuels and power production. [...] The information gathered during the literature review led to the modelling of a global cost-efficient supply scheme which takes into account the most feasible and the least costly options for establishing a biomass supply chain in the current context of the Canadian biofuel industry. [...] The large and steady volume of feedstock required by biofuel plants allows maximization of the annual use of farm balers, collection units and trucks, which in turn spread the capital cost of such equipment over a larger number of working hours and tonnes of product. [...] In order to prepare for the creation of an infrastructure for the second generation biofuel industry, this project seeks to investigate and analyze the logistical and economic implications of moving biomass from the point of harvest to the gate of a biofuel plant, in the present context of the Canadian economy.