Biomass represents a promising renewable source of hydrocarbons that also has the potential to reduce greenhouse gas emissions. However, significant challenges must be overcome for biomass to become a major source of hydrocarbons. Four current challenges which will be addressed include the development of new catalytic chemistry for biomass processing, understanding the environmental implications of biomass production, assessing potential impacts of new biobased fuels and chemicals throughout their life cycles, and evaluating policy drivers for biomass energy investment.