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The formation of high concentrations of acid gases; in combustion with large variations in fuel qualities, represents a major challenge for energy production from contaminated biomass fuels. This paper provides a comprehensive evaluation of the effects of acid gas formation and retention in the combustion of recycled wood fuels. A model has been developed based on the chemical reactions involved and empirical correlations from plant monitoring and testing. The model has been used to study the behaviour of acidic gas components in critical stages of a bubbling fluidised bed boiler process. Results indicate that the variation in type of fuel contamination is the most important issue to deal with in the combustion of recycled wood fuels. Peaks in the flue gas chlorine concentrations cannot be suppressed easily by conventional flue gas cleaning measures. Upon applying ammonium sulphate dosing for the protection of chlorine induced corrosions, it is sometimes difficult to maintain the required S/Cl ratio when large variations of fuel chlorine occur. Moreover, a high level of chlorine in the fuel can also indirectly affect the emission control of sulphur dioxide because it would require an increased level of ammonium sulphate decomposition, which results in a high level of SO2 in flue gas. The study also shows a beneficial effect of the recirculation of quench water from the flue gas condenser to the boiler. It offers opportunities for the optimisation of flue gas cleaning and flue gas condensation, for improving the efficiencies of water and wastewater treatment, as well as for emission reduction with a sustainable way.