Biomass energy is an important renewable energy, which comes directly or indirectly from photosynthesis of plants and is generally derived from agricultural and forestry wastes. The main characteristics of biomass wastes in China are large amount, wide distribution, low utilization rate, great development potential and high urgency of environmental management. With the exhaustion of non-renewable energy and the increasingly serious environmental pollution, the utilization technology of biomass energy needs to be developed as soon as possible. In this paper, the significance of distributed utilization of biomass energy was discussed, and the technologies of distributed utilization of biomass energy were introduced, including direct combustion technology, biochemical conversion technology (fermentation and anaerobic digestion), thermochemical conversion technology (gasification and pyrolysis), liquefaction technology, dense moulding technology and supercritical fluid conversion technology. The application of biomass conversion technology, including biomass gasification for power generation, gasification for hydrogen production, pyrolysis for hydrogen production, fermentation for fuel ethanol, pyrolysis for bio-oil, solidification for solid fuel, composting for fertilizer production, anaerobic digestion for biogas production and catalytic pyrolysis for biofuel production, was discussed. Furthermore, the development path of biomass energy industry was discussed, and the future development of biomass energy distributed utilization technology was prospected.