This paper presents the experimental development at demonstration scale of an integrated gasification system fed with wood chips. The unit is based on a fixed-bed, updraft and air-blown gasifier—with a nominal capacity of 5 MWth—equipped with a wet scrubber for syngas clean-up and an integrated chemical and physical wastewater management system. Gasification performance, syngas composition and temperature profile are presented for the optimal operating conditions and with reference to two kinds of biomass used as primary fuels, i.e., stone pine and eucalyptus from local forests (combined heat and power generation from this kind of fuel represents a good opportunity to exploit distributed generation systems that can be part of a new energy paradigm in the framework of the circular economy). The gasification unit is characterised by a high efficiency (about 79−80%) and an operation stability during each test. Particular attention has been paid to the optimisation of an integrated double stage wastewater management system—which includes an oil skimmer and an activated carbon adsorption filter—designed to minimise both liquid residues and water make-up. The possibility to recycle part of the separated oil and used activated carbon to the gasifier has been also evaluated.