Biological wood oxidation (BWO) is a process in which wood is composted by microorganisms in the presence of oxygen. In the process, sustainable heat is produced. BWO has been proposed as an environmental-friendly alternative to the combustion of fossil fuels. BWO does not release harmful emissions as CO2 and H2O are the main reaction products. Heat production from BWO has been studied to a limited extent, and the factors affecting microbial activity and wood degradation are not well understood. To this end, this thesis investigated the performance and possibility of BWO for heat production. It first gave a complete review on heat potential, production, recovery and utilization from composting. More importantly, the effect of two important factors, nutrients addition and temperature, were studied and recommendations to enhance the heat production rate of BWO were proposed.