Lignocellulose is considered an efficient raw material to produce fuel ethanol. Clean utilization of the solid residue derived from lignocellulose-based fuel ethanol is important for the biomass-to-ethanol production chain. Combustion characteristics of the residue originating from corn stalk-based cellulosic ethanol are studied in a circulating fluidized bed. Results indicate that circulating fluidized-bed combustion is an effective and stable way to burn the residue with high moisture content. CO emission during biomass combustion in a circulating fluidized bed is low in the range of several ppm. NO and N2O are the major pollutants during residue combustion. The optimal combustion temperature is limited to avoid agglomeration and reduce pollutant emission. Design data and theoretical support for design and operation of the residue combustion circulating fluidized-bed boiler are provided.