Progress is reported in several areas of research. The following cellulosic raw materials were selected for study: wheat, barley, and rice straws, rice hulls, sorghum, corn stover, cotton gin trash, newsprint, ground wood, and masonite steam-treated Douglas fir and redwood. Samples were collected, prepared, and analyzed for hexosans, pentosans, lignin, ash, and protein. Results of acid extraction and enzymatic hydrolysis are discussed. Yields of glucose, polyglucose, xylose, and arabinose are reported. Progress in process design and economic studies, as well as pilot plant process development and design studies, is summarized. (JGB)