In Tuvalu the sap from the coconut palm (Cocos nucifera) is known as "toddy". This paper examines toddy's current use as a foodstuff, the contribution of the sale of toddy products to household incomes and the potential use of sour toddy as a sustainable feedstock for bioethanol production for use as a petroleum substitute in Tuvalu. The productivity and current uses of coconut woodlands are also assessed. At current levels of production and use, less than 1% of coconut palms are used for toddy production by 1133 producers. Over 5 dm(3) of fresh toddy are produced annually and average toddy production per tree ranges from 1.7 to 4.3 dm(3) d(-1). The sale of toddy products provides 22-24% of annual household income for producers. The production of bioethanol from toddy has been demonstrated by the NGO Alofa Tuvalu. However, it is not currently cost competitive with petroleum, although in terms of productivity, the current toddy harvest could produce enough bioethanol to replace 31% of the nation's petroleum. It is evident that there is a large untapped biomass energy potential in Tuvalu which should be utilised if the Government of Tuvalu is going to fulfil their commitment to be carbon neutral by 2020. (C) 2012 Published by Elsevier Ltd.