Bioenergy with CO2 capture and storage (BECCS) is a promising negative emission technology (NET). When using sustainably produced biomass as fuel, BECCS allows the production of power and heat with negative CO2 emissions. The main technical challenges hindering the deployment of BECCS technologies include energy penalties associated with the capture process. This work evaluates the performance of an advanced CO2 capture technology, chemical looping with oxygen uncoupling (CLOU), in conjunction with biomass-fired combined heat and power (CHP) generation. Results from a MATLAB/Simulink reactor model were incorporated in a plant and integration model developed in a commercial process simulation software to quantify the key performance indicators of the CLOU-integrated CHP plant. Both energy and exergy analysis were conducted. The results show a remarkably low efficiency penalty of 0.7% compared to a conventional reference plant, and a high carbon capture efficiency of 97%. The low efficiency penalty is due to the high moisture and hydrogen contents of the biomass, and the separation of combustion products and excess air streams in the CLOU process; these together provide an opportunity to recover a significant amount of heat by flue gas condensation at a higher temperature level than what is possible in a conventional boiler. The condensing heat recovery yields an 18 MW generator power increase (3 MW loss in net power output) for the CLOU plant; in the reference plant with conventional boiler, the same scheme could achieve an increase of 9 MW (generator) and a decrease of 8 MW (net).