An analysis was conducted of designs for industry-scale ethanol production facilities that use both hexoses and pentoses to produce 97 to 107 tonnes of anhydrous ethanol per day from 960 tonnes of Pinus radiata wood of % moisture content (480 oven-dried tonnes). Various process options and available technologies were considered for cost comparisons. The base case plant design was used to assess the probable importance of not fermenting the wood pentose fraction. When pentose sugars were not fermented, the ethanol price increased from $0·71IL to $0·75IL. The influence of various economic factors on selling price was assessed. These factors included price sensitivity to (1) feed stock cost, (2) improved ethanol yields, (3) changes in major equipment costs, and (4) selected financial parameters. The sensitivity analysis indicated that feed stock costs and product yields were significant factors. It is concluded that currently available technology can be used to produce anhydrous ethanol at a competitive price.