Cellulosic ethanol is a biofuel produced from wood, grasses, or the inedible parts of plants. It is a type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. Lignocellulose is composed mainly of cellulose, hemicellulose and lignin. Production of ethanol from lignocellulose has the advantage of abundant and diverse raw material compared to sources such as corn and cane sugars.Cellulosic resources are in general very widespread and abundant. Examples of cellulosic materials are paper, cardboard, wood, and other fibrous plant material.Cellulose ethanol is a fully renewable, advanced biofuel that can be used in today's cars.  It is one of the most cost effective ways to reduce greenhouse gas emissions and gasoline consumption use in road transport, and can deliver CO2 reduction benefits similar to improved vehicle efficiency.

Advantages of Cellulosic Ethanol

Cellulose ethanol can significantly: Lower overall greenhouse gas emissions; Reduce reliance on imported oil and increase energy security and Help build rural economies and improve farm income. It is the perfect drop-in solution to combat climate change. Cellulosic ethanol has the potential to provide significant lifecycle GHG reductions compared to petroleum-based gasoline. In addition, the use of cellulosic materials to produce ethanol may yield a variety of other environmental benefits relative to corn-based ethanol.Cellulosic ethanol holds many of the same energy security benefits as grain ethanol–reducing dependence on foreign oil, diversifying energy supply, and decreasing the environmental impacts associated with the production and use of fossil fuels. Cellulosic ethanol is an attractive carbon mitigation and energy security option because resource inputs and local environmental impacts are low compared to grain-based ethanol. 

Market Demand

Many companies have announced projects or possibilities for converting cellulose to ethanol or methanol. In many countries, public and private efforts continue to support research on cellulosic ethanol, and technological advances are expected to reduce costs and improve production methods.Concerns about grain ethanol’s impacts on food security, local environmental quality and relatively minor GHG improvements should generate ongoing support for cellulosic ethanol.Over the next decade, both demand and production of ethanol are expected to increase dramatically, as nations require and seek out more renewable fuel sources.Cellulosic Ethanol holds an immense potential both in terms of potential production volumes, as well as the gasoline it will replace: cellulosic ethanol reduces CO2 emissions by up to 90% when compared to petrol gasoline. As Cellulosic ethanol becomes an economically viable option over the next few years, the use of available biomass will be intensified, creating a great source of income for the biofuel industry.