A novel pyrolysis technology of biomass with indirectly heating is carried out to produce medium energy gas. A pilot-scale gasificator has been build in the Institute for Thermal Power Engineering of Zhejiang University to investigate the pyrolysis characteristics of straw. The prospect of technologies to convert widely available straw into high quality gas fuel is very attractive. To utilize straw with high efficiency, medium energy gas and semi-coke are two main products in the pilot-scale gasificator. This gasificator can produce medium energy gas mainly through pyrolysis process. A series of related fundamental experiments have been made. The behaviors of straw pyrolysis, specially the effects of temperature had been research in detail. Through above experimental research, lots of valuable data had been collected. Those data are extremely useful to design the gasification part of biomass utilization project. The heating value of medium energy gas is 2800∼3500 Kcal/Nm3. This gasificator can convert a wide range of biomass into medium-energy gas. In addition, a demonstration gasification system will be designed based on above experiments. The feedstock of this system is rice straw, which is the most common biomass residue in rural areas of China.