They tried this at KI Sawyer in the UP of Michigan. It failed.
The idea was to make pellets out of the biomass. Then they would use those pellets at the coal fired plants at Marquette Michigan.
It will NOT work unless it is used at a site where they produce their own power to run the plants-I.E. Paper Mills.
Many modern sawmills not incorporated with a paper mill also produce wood pellets. It pays much more than chips/ton to the paper plants. However, to sell pellets in the residential market you need to bag/palletize/shrink wrap and load on flatbed trucks or in a boxcar.
The problem with regular wood pellets(like I burn in my Harman pellet stove insert) is that if they get wet, they are trash. Hence the bagging and shrink wrapping. If you get a regular wood pellet wet, it expands to about double in size and turns back into sawdust. I have some bags that got wet last year. I made a pellet sifter based on other peoples design on the internet.
Torrafied pellets do not absorb moisture like regular pellets. Therefore, you can load them in hopper railcars or bulk load on a ship and transport for much less per cubic ton. This is why most of the manufacturing plants are being located where they can load ocean going vessels or river barges.