As for the fuel wood chips and wood pellets made from wood scrap, most of them have been already used, and they are lacking in raw materials. On the other hand, although forest residues can play a role in alternative raw materials of the fuel wood chips and wood pellets and the useful quantity of forest residues are much more abundant than that of waste wood, they are not utilized due to the high cost. LCS has been designing the seamless and cost-competitive decentralized autonomous woody biomass energy-use process - from afforestation to energy use - to activate the rural district area through the realization of the economically independent forestry and the more utilization of the rich woody resources. In this proposal, we report the verification results of the manufacturing cost of wood chips and wood pellets. The costs per unit of energy are estimated to be 1.6 yen/MJ and 1.9 - 2.5 yen/MJ, respectively, while those of fossil fuels are 1.9 - 2.8 yen/MJ. It was found that the manufacturing cost of woody biomass per unit of energy was in between the same and the half of them. For the obtained values, however, since the cost-reductive effect by the subsidy is included, it is necessary to reduce the direct manufacturing cost of woody biomass from current half to around a one-fifth to make ends meet in the international market of wood chips and wood pellets. To make more use of woody biomass in the society, it is indispensable to decrease the costs of collecting raw materials and manufacturing as well as the initial costs of biomass-utilization equipment. Moreover, to improve the wood chips-manufacturing processes, the reduction process of moisture content in wood chips is one of the most important factors.