The technical and financial performance of high yield Eucalyptus biomass in a co-current dilute acid pretreatment followed by enzymatic hydrolysis process was simulated using WinGEMS (R) and Excel (R). Average ethanol yield per dry Mg of Eucalyptus biomass was approximately 347.6 L of ethanol (with average carbohydrate content in the biomass around 66.1%) at a cost of $0.49 L-1 of ethanol, cash cost of similar to $0.46 L-1 and CAPEX of $1.03 L-1 of ethanol. The main cost drivers are: biomass, enzyme, tax, fuel (gasoline), depreciation and labor. Profitability of the process is very sensitive to biomass cost, carbohydrate content (%) in biomass and enzyme cost. Biomass delivered cost was simulated and financially evaluated in Part I; here in Part lithe conversion of this raw material into cellulosic ethanol using the dilute acid process is evaluated. (C) 2010 Elsevier Ltd. All rights reserved.