The use of biomass derived from fast-growing trees grown on agricultural land is common practice in parts of Sweden, but not in most other European countries. In the first part of this paper the different conditions for economic use of fast growing trees are analysed in Germany and Sweden. Neither the legal framework nor the natural growing conditions are likely to limit the utilisation of the biomass potential in Germany. Rather, lack of a market for biomass products, poor awareness and little infrastructure for the management of woody biomass plantations are limitations in Germany. The second part offers a possible solution for supporting the market and reducing transaction costs during establishment of the market under German conditions. The proposed solution involves the establishment of 'ecological structures' based on fast-growing trees as a means to compensate for sealed land by roads and buildings. The proposed concept would not only extend the economic potential for producing energy from biomass, but also allow farmers to generate income. The concept can serve both economic and ecological goals. It can reduce municipal budget funding and support the agricultural industry in European countries which need to implement sustainable biomass concepts. (C) 2004 Elsevier Ltd. All rights reserved.