Increased environmental concerns, mainly related to fossil fuels consumption and global climate change, have drawn the attention to the dependence of human society on energy supply. As a consequence of EU Directives setting mandatory renewable energy targets up to 2020, member states are boosting renewable energy and bioenergy production. The use of wood biomass for bioenergy production can entail important benefits, including improved energy security due to a smaller dependence on fossil fuel supply, mitigation of climate impact, and revitalization of rural economies connected to new job opportunities. Nevertheless, bioenergy production also involves environmental and socio-economic concerns. The environmental, economic, and social sustainability of bioenergy production needs to be assessed through a set of multicriteria indicators. In this study, Life Cycle Assessment (LCA) was used to explore the environmental performance of bioenergy production in an Alpine area of Northern Italy. In particular, the environmental impacts of a wood-based bioenergy plant utilizing local residues from wood industries and forestry operations were investigated. The amount of CO 2 -eq emissions (0.25 kg CO 2 -eq kWh −1 ) and the fossil demand (0.09 kg oil-eq kWh −1 ) calculated for the investigated bioenergy plant resulted lower than the values characterizing fossil fuels-based power plants. Yet, the environmental performance of the investigated bioenergy plant was affected by the consumption of methane, still used in the plant to cover peak loads. The results showed that the use of local wood biomass in the investigated Alpine area is a desirable option for recycling wood residues while supporting heat and electricity production. The findings of this study can support local managers and policy makers committed to plan and implement renewable energy strategies and circular economy patterns. In addition, they can be useful to assess the potential upscale of this bioenergy option at regional and national level considering the availability of wood residues (from forestry and industrial sector) while verifying possible operational constraints at larger scales. Future studies could also integrate environmental accounting with other assessment methods exploring the economic profitability and social desirability of wood-based bioenergy production in mountain areas characterized by low population density and large forest cover.