Abstract: Biomass gasification, heat supply and power generation industry is an efficient and comprehensive utilization of processing residues of forestry resources. The annual amount of forestry processing residues in China is about 210 million tons. The heat supply and power generation using renewable forest resources would improve the energy structure in our country, strengthen energy security, enhance the level of energy conservation and emissions reduction, promote the construction of new socialist countryside and sustainable development of forestry. However, several issues generally exist during the development of biomass gasification, heat supply and power generation industry, such as difficult collection, storage and transport of raw materials, poor automation and intelligent level of manufacturing process, immature standardized production technology, and lack of high-value and comprehensive utilization technology. So several suggestions were proposed, including strengthening the construction of forestry characteristic resource base, innovation of distributed industry development mode, breakthrough on the bottleneck technical problems, strict examination and approval of market access, intensive industry standard and government management, and improved policy support, in order to establish an industry system, including stable raw material supply, green manufacturing of high quality gas and efficient application of biochar. Moreover, the forestry residues annually utilized in gasification industry will be more than 5 million tons of standard coal, and the total output value will reach 10 billion yuan per year until 2035.