A 0uidized bed reactor with 3kgh−1 throughput operating at an atmospheric pressure with an inert atmosphere at 773K has been used to produce bio-oils from the wood feedstocks such as Pterocarpus indicus, Cunninghamia lanceolata, and Fraxinus mandshurica, as well as from rice straw. The best oil-producing characteristics were for P. indicus and the worst were with rice straw. These data were used to design a larger scale unit of 20kgh−1 throughput, and to estimate the production costs at an industrial scale. The quality of the bio-oil produced remains poor, and a combination of high value products and energy applications are needed for pro7tability.