Linear stability analysis of a steady convective flow in a tall vertical annulus caused by nonlinear heat sources is conducted in the paper. Heat sources are generated as a result of a chemical reaction. The effect of radial cross-flow through permeable porous walls of the annulus is analyzed. The problem is relevant to biomass thermal conversion. The base flow solution is obtained by solving nonlinear boundary value problem. Linear stability analysis is performed, using collocation method. The calculations show that radial inward or outward flow has a stabilizing effect on the flow, while the increase in the Frank–Kamenetskii parameter (proportional to the intensity of the chemical reaction) destabilizes the flow. The increase in the Reynolds number based on the radial velocity leads to the appearance of the second minimum on the marginal stability curves. The rate of increase in the critical Grashof number with respect to the Reynolds number is different for inward and outward radial flows.