Demand for energy is rising rapidly with population growth and enhanced living standards for the majority people. Egypt remains heavily dependent upon petrochemical fuels- natural gas (42 percent) and crude oil (53 percent) – with the balance from hydropower, coal and renewable resources. Rice straw is n excellent source of heat energy and used for heating and cooking in the home in many countries, including Egypt, worldwide where large quantities of materials are available, where the logistics of handling are coast-effective and where favorable opportunity costs apply, commercial heat can be produced. Thus far, energy from straw has remained pilot-scale in Egypt, although number of proposals for larger-scale exploitation has been suggested. Two agency-funded gasification plants have been constructed and gas provided to local villages. Generation of biogas has been promoted by government of more than 50 years, with a number of small demonstration units established. With widespread access to modern power/fuels in recent years, many of these earlier investments have become obsolete. A large-scale straw pelletting plant was commissioned in 2008 for sale of pellets into export markets Herein may be potential for a thermal power station based on straw utilization.