The economics of collecting and processing whole-tree chips and logging residues (slash and residual timber) for energy use have been compared using data collected from four timber harvesting operations. The fuel cost of energy from these sources was shown to vary from $5.30 per giga joules to $8.73 per giga joules depending upon the harvesting method used and forest stand composition. Fuel produced from whole-tree chips is competitive with natural gas when hauling distances are 80 km or less. Whole-tree chips are a feasible substitute for oil when distances are less than 200 km. Logging residues are an attractive alternative to oil at hauling distances of less than 100 km, but cannot be competitive with the lower priced fossil fuels such as natural gas and coal.