Given that N-methylmorpholine-N-oxide (NMMO) is a promising alternative for the pretreatment of lignocelluloses, a novel process for ethanol and biogas production from wood was developed. The solvent, NMMO, is concentrated by multistage evaporation, and the wood is pretreated with the concentrated NMMO. Thereafter, ethanol is produced by the non-isothermal simultaneous saccharification and fermentation (NSSF) method, which is a rapid and efficient process. The wastewater is treated by upflow anaerobic sludge blanket (UASB) digester for rapid production of biogas. The process was simulated by Aspen plus (R). Using mechanical vapor recompression for evaporators in the pretreatment and multi-pressure distillation columns, the energy requirements for the process were minimized. The economical feasibility of the developed biorefinery for five different plant capacities was studied by Aspen Icarus Process Evaluator. The base case was designed to utilize 200,000 tons of spruce wood per year and required ME 58.3 as the total capital investment, while the production cost of ethanol is calculated to be (sic)/1 0.44. (C) 2011 Elsevier Ltd. All rights reserved.