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Size reduction is often a first step in primary processing of biomass for its handling and downstream processing applications. Selecting appropriate equipment for size reduction has a very important role in the biomass preparation. One of the main reasons is that size reduction equipment consumes large quantities of power. In this paper, we reviewed commercial equipment used for size reduction of woody biomass. The review also included the capital cost, operating costs and performance of equipment. The performance of equipment is evaluated based on its power consumption and the quality of chip production, which includes average particle size and particle size distribution.