in recent years’ production of transportation biofuels generated from forest residues have grown rapidly on a global scale. converting to advanced biofuels is enticing because they can help reduce dependence on oil; mitigate global warming; free up agricultural land and utilize waste wood. to encourage advanced biofuel production, canada can look to countries like sweden that provide subsidies for advanced biofuels. in this undergraduate thesis thermochemical conversion had the lowest average cost of production for all the studies that had techno-economic in the production of cellulosic ethanol at us$0.33/l.