The main component remaining in the solid residues following cellulose and hemi — cellulose hydrolysis to sugars is lignin (15-20% of the biomass feedstock) which has a heating value just slightly less than coal (~25 GJ/ton vs ~28 GJ/ton for coal). Therefore, lignin could be used as feedstock for co-firing, or gasification, in an integrated biorefinery to generate heat and electricity. Lignin, and associ­ated phenolic compounds, can also be used as chemical intermediates, however, this market volume is probably limited. The main utilization will probably be for heat and electricity: both for internal use in the biorefinery and perhaps to generate surplus electricity that could be sold back to the grid, further capturing the economic benefit [60].