Biomass remains a key energy source for several billion people living in developing countries, and the production of liquid biofuels for transportation is growing rapidly. However, both traditional biomass energy and crop-based biofuels technologies have negative environmental and social impacts. The overall research challenge for bioenergy is to develop the technologies to produce useful products at low costs while minimizing the use of scarce resources such as arable land and water. This requires substantial advancements in modern biomass power generation and the success of liquid biofuel technologies that permit the use of lignocellulosic feedstocks or possibly algae. With such technologies, biomass resources could meet a significant fraction (over 10%) of global energy demand. Both improved policies and technologies are needed to ensure that bioenergy contributes significantly to economic, social, and environmental goals.

Although ethanol is now made from the sugars in the starch fraction of corn and other crops and from the sugar in sugarcane, a much greater impact for ethanol in terms of fuel use could be realized if the sugars from more recalcitrant cellulosic biomass could be converted to ethanol. Cellulosic biomass is the structural portion of plants and includes agricultural (e.g., corn stover, which is all of the above-ground portion of the corn plant, excluding the grain) and forestry (e.g., sawdust) residues, major fractions of municipal solid waste (e.g., waste paper and yard waste), and herbaceous (e.g., switchgrass) and woody (e.g., poplar) crops grown as energy resources. Although distinctive in outward appearance, these materials all comprise about 40–50% cellulose and 20–30% hemicellulose, with lesser amounts of lignin and other compounds such as sugars, oils, and minerals. Cellulose is a polymer of glucose sugar molecules that are physically linked together in a crystalline structure to provide structural support for plants. Hemicellulose is also made up of sugars covalently joined together in long chains, but it generally includes fve different sugars: arabinose, galactose, glucose, mannose, and xylose. In addition, hemicellulose is an amorphous, branched material. Lignin is a phenylpropene compound that can be viewed as a low-sulfur, immature coal.