Rural and sustainable development is one of the biggest challenges in the European Union at the moment. Biofuel production and its use support both mitigation of the climate change and creation of new businesses for rural areas. As a result, EU has set a goal to double the share of utilization of renewable energy sources by 2010 from the level of 1998. The target for the increase of bioenergy usage is even more ambitious.The bioenergy sector in Europe has traditionally been operating mostly on local or regional level. Biofuel markets have been regional and operators have favoured local technologies. Today, the challenging target set to the increase of the utilization of the bioenergy necessitates promotion and mobilization of best available practises and technologies at European level. This requires international networking and close co-operation between private companies and public authorities.The enlargement of the European Union, implementation of the Kyoto Agreement , and reformation of EU’s agricultural policy will influence the energy market of the Baltic sea region significantly in the near future. Policies and legislation mostly support the use of bioenergy and the present research and development has resulted in reliable technologies. However, new technologies are not implemented widely enough and efficient end users' services are missing. Only few strategic measures have been developed to promote sustainable use of the bioenergy potential through spatial planning processes. Bioenergy Technology Transfer Network –Project (BTN) was established in 2002 to create suggestive models to these challenges.The BTN activities have 1) helped the decision makers to get information about the regional bioenergyresources, 2) increased the understanding of the positive impacts of the bioenergy utilisation on regionaleconomy and employment, 3) increased the know-how on available and future technologies, 4) and identified and cleared bottlenecks on the chain of bioenergy utilisation. As a result, the bioenergy markets have developed in participating regions.The main outputs of the project include regional bioenergy strategies and development plans, international bioenergy training programme packages, and a network of regional Bioenergy Development Centres (BDC-Network). The 3-year project ended in September 2005. Achievements: The preparation and the analysis of the regional bioenergy strategies have increased the understanding of the spatial planning procedures in partner regions. The Finnish Regional Bioenergy Development Centre (BDC Finland) was opened in may 2003. Since then it’s integrated R&D, training and exhibition facilities have been further developed to support the development of bioenergy business in the region.The Energy Farm as a Bioenergy Demonstration Center (BDC) for Norway generally, and for the Hadeland Bioenergy region in particular, has been improved with more demonstration activities and further theoretical training programmes. CEBra GmbH established the BDC Brandenburg (Wood Energy Centre Eberswalde) in August 2005. The BDC is located in the premises of the Brandenburg Forestry Authority at the wood campus of the University of Applied Sciences Eberswalde.International seminars have been organised. Seminar on Bioenergy Interacting between Rural and Urban Areas attracted participants from several countries. The keynote speaker of the seminar was Minister Mauri Pekkarinen, Ministry of Trade and Industry of Finland.The resources, production and use of bioenergy in partner regions have been analysed and bottlenecks in the chain of bio energy utilization have been identified. The results are documented in the publication “Bioenergy Environment and Development, Äänismaa, P. & Nummi, M. (Eds.). 2005.”.Regional bioenergy strategies and development plans have been prepared. International bioenergy training programme packages have been developed. As a result of the close collaboration between Jyväskylä Polytechnic (FINLAND) and Energy Farm (NORWAY) a one-year training programme on wood energy (WFE) started in Sep 2004. The students represented 3 European countries.Learning material created by the BTN partners has been exchanged in order to improve local and national bioenergy training.Training and information package “Bioenergy Route – Leading Know-How in Central Finland” has been prepared and published.Pilot and development actions have resulted in more efficient fuel and heat production methods and technology. Technology transfer of forest chip boiler from Germany to Norway. Technology transfer of chipping technology from Finland to Norway.An innovative multiple use mobile dryer for wood and agro fuels has been developed.Establishment of the three year BioReg Hadeland project in Norway, which aims at developing the region Hadeland to an outstanding (national) bioenergy region in terms of bioenergy in practice. The project has made a considerable contribution to the acceleration of the wood energy market development in Brandenburg.