In order to improve the energy efficiency and reduce the carbon dioxide emission of conventional fossil-fuel based power plant and boiler system, it is suggested that replacing the conventional system by biomass-based cogeneration systems for generating electricity and producing steam. The biomass and biomass boiler system were introduced in this article, and the economic feasibility of biomass-based cogeneration systems was also evaluated in this article. In addition, the steam compression system was introduced in this article, too. From the result of evaluation, the combination of biomass-based cogeneration and double-effect absorption chiller was suggested for providing stable electricity and steam for factories, and the steam that was not used by factories could be used by absorption chiller for producing the ice water. Hence, the electricity used by air conditioning system can be reduced, and the loading of power system can be reduced too. From the economic evaluation, the system payback period is about two and a half years.