Lignocellulosic biomass, such as agricultural and forestry residues & herbaceous energy crops can serve as low cost feedstocks for production of fuel ethanol & other value-added commodity chemicals. The technology of bio-refinery is based on pressure hydrolysis, which breaks down the lignocellulose biomass into hydrolytic hydrocarbons (glucose) and a solid lignocellulose phase. Fural & a mixture of acids are separated from the vapour phase of the hydrolysis, and lignin is extracted from the solid phase & further processed. The raw material like waste straw or energy plants, such as feed sorrel, millet, wood chips and others is decayed into hydrolysed sugars (glucose) & the solid phase. The hydrolytic hydrocarbon (sugar) solution is transferred to enzymatic hydrolysis of a starchy material (corn grain), where its heat energy is utilised. The sugar solution is then fermented and ethanol is distilled from it. For example, from one ton of straw it is possible to acquire 250 l of ethanol and 70 Kg of furfural. At the same time we can produce also 90 Kg of lignin or 500 Kg of peletized fuel.