Source of picture: Biomass Energy --Energy from Plants and Animals (http://www.edinformatics.com/math_science/alternative_energy/biomass/biomass_basics.htm)
Photosynthesis takes place primarily in plant leaves, and little to none occurs in stems. The parts of a typical leaf include the upper and lower epidermis, the mesophyll, the vascular bundle(s) (veins), and the stomates. The upper and lower epidermal cells do not have chloroplasts, thus photosynthesis does not occur there ("Photosynthesis," 1999). They serve primarily as protection for the rest of the leaf. The stomates are holes which occur primarily in the lower epidermis and are for air exchange: they let CO2 in and O2 out. The vascular bundles or veins in a leaf are part of the plant's transportation system, moving water and nutrients around the plant as needed. The mesophyll cells have chloroplasts and this is where photosynthesis occurs.
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