With the increasingly serious problems of energy shortage and environmental degradation, countries around the world are actively developing safe, environmentally friendly, and renewable energy. Biomass energy has become an ideal substitute for fossil fuels due to its abundant reserves, good renewable performance, and zero carbon emissions. This paper discusses the importance and potential of biomass energy as a renewable energy source for China’s energy development, mainly including the three biomass conversion methods of physics, chemistry, and biology, seven utilization technologies, such as direct combustion, gasification, and pyrolysis, and five application approaches, such as biomass power generation, biomass gas fuel, biomass liquid fuel, and bio-based materials. This review systematically analyzes the challenges faced by China’s development of biomass energy and discusses the future development direction of biomass. The utilization of biomass resources should take a comprehensive and high-value path. China is actively looking for new energy utilization paths, and biomass energy has become a key measure to cope with carbon emission reduction, climate change, and ecological environment protection.