Ethanol produced from various lignocellulosic materials such as wood, agricultural and forest residues has the potential to be a valuable substitute for, or complement to, gasoline. This paper reviews the research activities in Sweden on development of the technology for ethanol production from lignocellulosics. The paper focuses on hemicellulose and cellulose hydrolysis and fermentation as well as on process integration and techno-economic evaluation of the overall process