Due to a stronger dependency on biomass for energy, there is a need for improved technologies in biomass-to-energy conversion in Tanzania. This paper presents a life cycle assessment (LCA) of pyrolysis technology used for conversion of wood and wood waste to liquid biofuel. In particular, a survey of environmental impacts of the process is presented. The LCA covered the steps from feedstock collection and supply, the facility itself and the end-use of the product with emphasis on different geographic, temporal, technical and environmental scenarios. The assessment was conducted starting from process synthesis, establishment of LCA parameters, and product parameters. The importance of the biofuel project is the economic growth, reduced national dependency on petroleum fuels and change in the standard of lining in the rural areas of Tanzania were critically analyzed. The study shows that biofuel has little negative impacts to human health and the environment during its life cycle. The impacts of the project on air quality, land use sustainability and on forestry and agriculture were analyzed and control strategies were recommended for offsetting the negative impacts. The biofuel have excellent performance in the combustion facilities, with lower emission levels below standard limits compared to petroleum fuels. (Contains 2 tables and 5 figures.)