In this work, the inclusion of on-site cellulase production in an integrated 1st and 2nd generation sugarcane ethanol production process was evaluated and compared with an alternative scenario purchasing commercial enzyme. Economic and environmental impacts on 1st and 2nd ethanol production were assessed. Process simulations developed on Aspen Plus® were used to provide data regarding technical aspects, input and output streams, energy requirements and equipment that were used for the economic analysis and for modelling the life cycle inventory. Results showed that on-site enzyme production may be an attractive alternative from technical, economic and environmental point of view. However, reducing enzyme requirement or its recycle would also be very interesting in order to achieve better environmental and economic results. Studies on enzyme production at this development stage are of the utmost importance, since there are no established technological routes to obtain cellulases; and the costs of enzyme considering a full scale sugarcane biorefinery, such as the designed scenario for second generation biofuels production, are highly uncertain.