Wood and other biomass have the great potential of decreasing carbon dioxide emissions to the atmosphere, or at least mitigating the speed of the increase in the concentration of carbon dioxide. This paper presents an analysis of the possible use of degraded land – thermal power plant ash ponds – for the growth of fast-growing trees for fuel wood and the subsequent utilization of this fuel wood by means ofa verified technique – co-combustion with coal, or a proposed technique – pyrolysis. Pyrolysis of wood with the combustion of pyrolysis gases and carbon sequestration would provide approximately 26% more favorable effects on climate change than the co-combustion of wood in a coal-fired boiler.