Disclosed is a system and method for the combustion of biomass material employing a swirling fluidized bed combustion (SFBC) chamber, and preferably a second stage combustion carried out in a cyclone separator. In the combustion chamber, primary air is introduced from a bottom air box that fluidizes the bed material and fuel, and staged secondary air is introduced in the tangential direction and at varied vertical positions in the combustion chamber so as to cause the materials in the combustion chamber (i.e., the mixture of air and particles) to swirl. The secondary air injection can have a significant effect on the air-fuel particle flow in the combustion chamber, and more particularly strengthens the swirling flow, promotes axial recirculation, increases particle mass fluxes in the combustion chamber, and retains more fuel particles in the combustion chamber. This process increases the residence time of the particle flow. The turbulent flow of the fuel particles and air is well mixed and mostly burned in the combustion chamber, with any unburned waste and particles being directed to the cyclone separator, where such unburned waste and particles are burned completely, and flying ash is divided and collected in a container connected to the cyclone separator, while dioxin production is significantly minimized if not altogether eliminated. The system exhaust is directed to a pollutant control unit and heat exchanger, where the captured heat may be put to useful work.