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Environmentally sustainable energy sources are called for due to contemporaneous development in industries along with the rapid pace of urbanization. Ethanol produced from biomass can be deliberated as a clean and safest liquid fuel and an alternative to fossil fuels as they have provided unique environmental, strategic economic benefits. For the past decade, it has been noticed that there is an increasing trend found in bio ethanol production which has created a stimulus to go for advancement in bio ethanol production technologies. Several feed stocks have been used for the bio ethanol production but the second generation bio ethanol has concentrated on the lignocellulosic biomass. Plenteous lignocellulosic biomass in the world can be tapped for ethanol production, but it will require significant advances in the ethanol production process from lignocellulosic because of some technical and economic hurdles found in commercial scale. This review will encompass the current status of bio ethanol production in terms of their economic and environmental viability along with some research gaps as well as policy implications for the same.
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