The growth in energy demand, coupled with declining fossil fuel resources and the onset of climate change, has resulted in increased interest in renewable energy, particularly from biomass. Co-firing, which is the joint use of coal and biomass to generate electricity, is seen to be a practical immediate solution for reducing coal use and the associated emissions. However, biomass is difficult to manage because of its seasonal availability and variable quality. This study proposes a biomass co-firing supply chain optimization model that simultaneously minimizes costs and environmental emissions through goal programming. The economic costs considered include retrofitting investment costs, together with fuel, transport, and processing costs, while environmental emissions may come from transport, treatment, and combustion activities. This model incorporates the consideration of feedstock quality and its impact on storage, transportation, and pre-treatment requirements, as well as conversion yield and equipment efficiency. These considerations are shown to be important drivers of network decisions, emphasizing the importance of managing biomass and coal blend ratios to ensure that acceptable fuel properties are obtained.