This project targets the development of a process for low-cost production of fuel-grade ethanol using novel reaction and separation technologies. Due to the recent significant increase in the cost of petroleum, minimizing the cost of fuel production, while at the same time increasing yields is a major concern. According to the Renewable Fuels Association, each year an estimated 87 U.S. ethanol plants produce over 3.85 billion gallons per year. The design of the plant incorporates a simultaneous saccarification and fermentation reactor utilizing STARGEN enzyme (Genencor). In addition, a PerVap separation system (Membrane Technology and Research) has been incorporated to efficiently remove ethanol from the fermentation broth. Our reaction data for this process showed both high yields and titers of ethanol and will be presented. In addition, the proposed plant cost analysis will be presented.