<p>The increasing urgency to address climate change and reduce greenhouse gas emissions has prompted a global shift towards ‘net zero’ and sustainable energy sources. As a renewable resource, biomass, specifically wood chips, has emerged as an alternative to fossil fuels for generating heat and warrants an insightful investigation of its environmental implications. This research conducted a resource analysis and Environmental Life Cycle Assessment (LCA) of producing 1 Megawatt hour (MWh) of heat energy from biomass wood chips using biomass boilers with an average capacity of 300 kW and compared it to the production of 1 MWh of heat from fossil fuel oil on Prince Edward Island (PEI). While this specific case study was scoped for Prince Edward Island, Canada, the methods and conclusions may be extended to communities around the globe facing similar decisions. The adopted LCA methodology follows ISO 14040 standards. The findings indicate that energy production from wood chips has distinct environmental advantages over fossil fuel oil in several categories. Greenhouse gas emissions and ozone depletion are significantly lower when heat is generated from biomass, however it is important to emphasize that biomass heat generation is not ‘carbon neutral,’ as greenhouse gases are emitted across multiple life-cycle phases, including fossil fuel emissions from harvesting, processing, and transportation. Despite these benefits, biomass heat also generates higher negative impacts in areas such as freshwater ecotoxicity, land use, and particulate matter formation, which pose risks to the health and resilience of the environment and human populations. If a sustainable transition to renewable biomass heating is pursued, harvesting related risks, particularly those associated with high intensity, spatially concentrated harvesting practices such as clear-cutting, along with associated environmental impacts must be explicitly acknowledged and addressed rather than overlooked in the pursuit of a net zero future.</p>