Australia’s large potential forest bioenergy resource is considerably underutilised, due largely to its high delivered costs. Drying forest biomass at the roadside can potentially reduce its delivered cost through weight reduction and increased net calorific value. There has been little research on the impact of roadside drying for Australian conditions and plantation species. This study compared delivered costs for three forest biomass types—Eucalyptus globulus plantation whole trees and logging residue (LR)-disaggregated (LR conventional) or aggregated (LR fuel-adapted)—and three roadside storage scenarios—no storage, ≤two-month storage and optimal storage—to supply a hypothetical thermal power plant in south-west Western Australia. The study was performed using a tactical linear programming tool (MCPlan). Roadside storage reduced delivered costs, with optimal storage (storage for up to 14 months) producing the lowest costs. Delivered costs were inversely related to forest biomass spatial density due to transport cost reductions. Whole trees, which had the highest spatial density, stored under the optimal storage scenario had the lowest delivered costs (AUD 7.89/MWh) while LR conventional, with the lowest spatial density, had the highest delivered costs when delivered without storage (AUD 15.51/MWh). For both LR types, two-month storage achieved ~60% of the savings from the optimal storage scenario but only 23% of the savings for whole trees. The findings suggested that roadside drying and high forest biomass spatial density are critical to reducing forest biomass delivered costs.