The conversion into a bio-based economy in Sweden requires a broad range of initiatives. One of the challenges is that additional sources of biomass will be needed. High yield potential, low conversion and production costs are critical success factors for new raw material. Salix is an energy crop that could be an important component of the total biomass production since it has a very good energy balance compared to other agricultural crops. In the project innovative methods will be developed for plant breeding so new high yielding varieties could be produced. The combination of more efficient selection methods and an added value of the raw material through plant breeding for use as biofuel creates better conditions for Salix cultivation. The conversion processes of Salix biomass to biofuels is studied in a collaborative project so the entire value chain from variety development, cultivation at the farm and biofuel production in industry will be interesting business opportunities.