Based on the results of two bioenergy research initiatives in Germany, this reference examines the sustainable management of wood biomass in rural areas. The large number of participating organizations and research institutes ensures a balanced and unbiased view on the potentials and risks is presented, taking into account economic, ecological, and social aspects. Most of the results reported are available here for the first time in English and have been collated in central Europe, but are equally applicable to other temperate regions. They highlight best practices for enhancing dendromass potential and productivity, while discussing the implications on rural economies and ecosystems.