Co-combustion of Biomass is a promising greenhouse gases (GHG) abatement technology. This study presents a numerical modeling of co-combustion of coal and Biomass firing under air and oxy-fuel conditions in a small scale furnace. Co-firing conditions are varied with the Biomass sharing considering 20%, 40% on mass basis. Level of confidence is achieved by comparing the model-predicted peak radiative heat flux against the experimental data. Results are presented comparing the flame temperature distribution, species concentration for different cases. Unburned Carbon in ash (CIA) is predicted for different cases and reasonable agreement has been obtained. An improved burnout was observed in oxy-fuel cases. No significant change in CO2 concentrations with the increase of biomass contribution to the total fuel input proves that biomass is CO2-neutral energy source.