Birch (Betula pubescens) was steam exploded at 13 different conditions with temperatures ranging from 170 to 230<SUP>o</SUP>C and residence times ranging from 5 to 15min. Increasing severity in the pretreatment led to degradation of xylan and formation of pseudo-lignin. The effect of the pretreatments was evaluated by running enzymatic saccharification and anaerobic digestion followed by analysis of sugar and methane yields, respectively. Enzymatically released glucose increased with pretreatment severity up to 220<SUP>o</SUP>C for 10min and levels of solubilized glucose reached 97% of the theoretical maximum. The highest methane yield (369mLgVS<SUP>-1</SUP>) was obtained at a severity factor of 4.5 and this yield was 1.8 times higher than the yield from untreated birch. Enzymatic glucose yields and methane yields were generally correlated. The results indicate that steam-exploded birch can be effectively converted to either glucose or methane.