This report brings insights into the potential of valorising local lignocellulosic biomass of wood in the province of Gelderland at construction industry. The use of locally available wood can make a crucial contribution to the future mix of raw materials for the building industry. This is supportive of reaching targets to combat climate change and contributes to circular economy by storing carbon and reducing dependence on non-renewable sources. An analysis was made of the current situation in Gelderland, including the current use and availability of biobased materials, and a mapping of the various stakeholders along the value chain. Current policies influencing the use of biobased material in the construction sector were reviewed. Through a series of interviews of different actors along the value chain, the hurdles and gaps faced for the increased implementation of biobased building materials and for increasing the circularity of the building industry were identified. Furthermore, the current and potential availability of wood that can be sustainably sourced from the province of Gelderland was identified through a study with the EFISCEN Space forest resource model, combined with a literature review on the potential of different species to be used in the construction sector. Possibilities of matching the local wood species to the demands of the building applications were analysed. Finally, a SWOT analysis was carried out to identify the main issues and needs such as knowledge, infrastructure, chains, collaborations, policy, technology for the valorisation of local wood in the construction sector. Subsequently recommendations were provided for next possible actions and the role of the different actors in the chain to address these needs. Being the most wooded province of the country and hosting a significant construction industry, makes Gelderland an advantageous spot to explore this opportunity. Furthermore, the knowledge domain in the province and relevant national and provincial policy incentives support the circular economy transition. There is knowledge on biobased products within WUR and other knowledge partners in the province. At the other hand, European policy towards renewable energy, especially Renewable Energy Directive, diverts biomass towards energy production. Moreover, Dutch policies towards nature conservation imposes restrictions on harvesting wood. Furthermore the large scale availability of wood abroad such as North and East Europe, make Dutch wood relatively more expensive. Also the local infrastructure in making wood based building materials is limited. Yet, there is increasing demand for locally produced wood products. Improvement of the supply and utilization of local wood calls for strengthened communication and collaboration between many partners (feedstock suppliers, technology providers, knowledge an testing institutes/centres, industry, cluster organisations and municipalities). Furthermore, there is requirement of investment to stimulate development of necessary infrastructure and innovation to develop local value chains and to increase the number and volume of the applications.