ANNOTATION: A survey to characterize the extent and nature of commercial-scale wood energy in North Carolina was sent to 200 primary wood-processing, secondary wood-manufacturing and nonwood-processing facilities known to have used wood fuels in 2004. Ninety-four percent of responding facilities estimated their energy savings were 40 percent or greater by using wood energy instead of fossil fuels. Twelve percent of facilities were generating electricity, and 22 percent expressed interest in exploring the feasibility of generating electricity. Results suggest most wood residues produced by wood-processing facilities in North Carolina are currently being used as fuel. Thus, expansion of wood energy must be based on use of logging chips or municipal woodwastes. The main constraints found for using logging chips as a fuel were price, moisture, dirt, and chip size. Facilities that currently purchase wood residues for fuel indicated a willingness to purchase logging chips at similar prices in the future. ABSTRACT: Recent environmental and economic concerns have led to renewed interest in wood as an energy source. A survey to characterize the extent and nature of commercial-scale wood energy in North Carolina was sent to 200 primary wood-processing, secondary wood-manufacturing and nonwood-processing facilities known to have used wood fuels in 2004. Seventy-six complete surveys were returned. Ninety-four percent of responding facilities estimated their energy savings were 40 percent or greater by using wood energy instead of fossil fuels. Twelve percent of facilities were generating electricity, and 22 percent expressed interest in exploring the feasibility of generating electricity. Results suggest most wood residues produced by woodprocessing facilities in North Carolina are currently being used as fuel. Thus, expansion of wood energy must be based on use of logging chips or municipal woodwastes. The main constraints found for using logging chips as a fuel were price, moisture, dirt, and chip size. Facilities that currently purchase wood residues for fuel indicated a willingness to purchase logging chips at similar prices in the future. In North Carolina, schools, hospitals, institutions, and nonwood manufacturers are good candidates for wood-fuel use. This survey will help facilitate extension and education programs regarding use of wood fuels for generating energy in North Carolina.