The conversion of biomass into biofuels can reduce the strategic vulnerability of petroleum-based transportation systems. Bioethanol has received considerable attention over the last years as a fuel extender or even as a neat liquid fuel. Lignocellulosic materials are very attractive substrates for the production of bioethanol because of their low cost and their great potential availability. Two different process alternatives (i.e. the enzymatic hydrolysis and fermentation process and the gasification and fermentation process) for the production of fuel ethanol from lignocellulosic feedstock are considered and analysed. After a rigorous mass and energy balance, design optimisation is carried out. Both processes are assessed in terms of ethanol yield and power generation as well as from a financial point of view. A sensitivity analysis on critical parameters of the processes' productivity and profitability is performed. (C) 2008 Elsevier Ltd. All rights reserved.