The current global climate change, the 2030 Agenda, and the planetary boundaries have driven new development strategies, such as the circular economy, bioeconomy, and biorefineries. In this framework, this study analyzes the potential availability and sustainability of the wood supply chain for a small-scale biorefinery aiming at producing 280–300 L of bioethanol per ton of dry biomass, consuming 30,000 t of dry biomass per year harvested in a 50 km radius. This wood production goal was assessed from Eucalyptus grandis stands planted for solid wood in northeastern Uruguay. Moreover, to understand the environmental performance of this biomass supply chain, the energy return on investment (EROI), carbon footprint (CF), and potential soil erosion were also assessed. The results showed that the potential wood production would supply an average of 81,800 t of dry mass per year, maintaining the soil erosion below the upper threshold recommended, an EROI of 2.3, and annual CF of 1.22 kg CO2−eq m−3 (2.6 g CO2−eq MJ−1). Combined with the environmental performance of the bioethanol biorefinery facility, these results would show acceptable values of sustainability according to EU Directive 2009/28/ec because the bioethanol CF becomes 1.7% of this petrol’s CF.