Novozymes is, as an independent enzyme technology provider, focusing on enabling the industry in a wider context to commercialize lignocellulosic ethanol. Through an unprecedented research effort with more than 150 scientists, Novozymes is breaking through the barriers for commercialization. Novozymes is developing highly cost effective novel enzyme systems, and has recently launched two new state-of-the-art products. With leading ethanol producers in US, China, Brazil and in Europe, processes are developed and integrated leading to total cost scenarios that could make sustainable 2G ethanol production competitive with gasoline in the near term. Novozymes is working in China with COFCO and Sinopec, two large state owned companies, and together the three parties represent all parts of the value chain.  Progress from the joint development project on corn stover to ethanol will be outlined.