The large amount of waste oil sludge was generated from waste oil purification process, oil bunker, or the ocean plant. Although it has high calorific values, it should be treated as a designated waste. During the recycling process of construction and demolition wastes or the trimming process of woods, a lot of sawdust is produced. In this study, the feasibility of BOF (biomass and waste oil sludge fuel) as a renewable energy source was estimated. For manufacturing a BOF, a press type pelletizing was better than an extruder type and also 40 ~ 60% of mixing ratio in waste oil sludge was appropriate to produce a pellet. The pellet was 13 mm in diameter and 20 mm in length. There was no fixed carbon in waste oil sludge, and its carbon content and higher heating value were 63.90% and 9,110 kcal/kg, respectively. With an increse of mixing ratio of sawdust, the carbon content and heating value of the BOF were dropped, but fixed carbon content was increased. The heating value of BOF was in the range of 6,400 ~ 7,970 kcal/kg at the mixing ratio of 40 ~ 60% in waste oil sludge. It means that the BOF can be classified as the 1stgrade solid fuel. In TGA experiment carried out at heating rate of 10oC/min and under nitrogen atmosphere, thermal decomposition of sawdust was occurred in two steps, but waste oil sludge was destructed in one step. The initiated cracking temperature of sawdust and waste oil sludge was 300 and 280oC in respective and after 450oC the thermal decomposition process of sawdust was slowly progressed by 800oC in contrast to waste oil sludge. Thermal decomposition of waste oil sludge was finished around 600oC. It can be considered that this difference is due to the fixed carbon content. Thermal decomposition pattern for the pellet of mixing ratio over 50% in waste oil sludge was similar to that for waste oil sludge and thermal cracking was occurred between 300 and 350oC. As the mixing ratio of waste oil sludge in the pellet increased, the reaction of thermal cracking became fast.