The aim of this project is to bring the patented Inbicon Core technology for 2nd generation bio-ethanol production from a pre-commercial to a full commercial level, making the technology available in the market and attractive to investors in 4 – 5 years. The technology was developed in steps (also partly EU funded) and now a 4 t/hr biomass to ethanol plant is being built in Kalundborg in Denmark. The plant will be in operation in the fall of 2009 and will produce 5 million litres of ethanol annually. More than 10 years of development has brought about a robust process capable of producing substantial quantities of ethanol from biomass. The next necessary step is to reduce the production costs, thus making the process feasible. In this proposal we apply for funding to demonstrate the 4 t/hr at industrial scale and optimise the plant to lower the production costs for ethanol through: Improving the capacity of the plant, reducing the energy consumption and water balance, adding a fermentation step for C5 sugars and recycle the enzymes in the process. Ultimately we will improve the capacity of the plant to become a 8-10 t/hr plant by developing the process from being partly continuous to operate in a truly commercial continuous mode. We expect this to result in a significant cost-cut in ethanol production expenses. The ethanol produced will be characterized and tested in engine test-rigs and in car-fleet, thus covering the whole value chain from the straw entrance to the gate of the ethanol plant production to end-users in cars. The process will be assessed from an environmental perspective through LCA analysis and results will be published for scientific purpose and for expanding the use of the technology to use for future business partners. The team of partners in this project are those who have a relevant business role in the demonstration of this value chain, a research center and universities with competences in key areas.