The conversion of wood to synthetic natural gas (SNG) via gasification and catalytic methanation is a renewable close to commercialization technology that could substitute fossil fuels and alleviate global warming. In order to assure that it is beneficial from the environmental perspective, a cradle to grave life cycle assessment (LCA) of SNG from a first-of-its-kind polygeneration unit for heating, electricity generation, and transportation was conducted. These SNG systems were compared to fossil and conventional wood reference systems and environmental benefits from their substitution evaluated. Finally, we conduct sensitivity analysis for expected technological improvements and factors that could decrease environmental performance.