Biomass frequently constrains its widespread application due to its low economic efficiency. In this project, a new approach of biomass application was explored to reduce bio-syngas production cost. A model for the bio-syngas production from biomass gasification and bio-syngas purification (Selexol and water scrubbing) were studied. Based on the simulation results, we assessed the feasibility and viability of the project. Preliminary results showed that the bio-syngas production cost with Selexol (2.15 $/Nm3) is even higher than biomass used in power generation systems (equal to 1.58–2.21 $/Nm3). However, water scrubber was used as bio-syngas purification, the capital investment cost and bio-syngas production cost (1.34 $/Nm3) was significantly reduced. A sensitivity analysis was conducted on the bio-syngas price, which could be further reduced by various factors: biomass price, carbon taxes, and carbon credits. We assumed that bio-syngas was applied to natural gas pipeline, our analysis showed that the application of bio-syngas (2–10% content) to natural gas had little impact on natural gas properties: combustion value and price. The technology of water scrubber makes the applications of biomass-based fuels competitive.