**AWARDS ISSUED PRIOR TO JANUARY 20, 2025, WERE FUNDED UNDER PREVIOUS ADMINISTRATIONS AND MAY NOT REFLECT THE PRIORITIES AND POLICIES OF THE CURRENT ADMINISTRATION.** IN THE CONVENTIONAL BIOLOGICAL PLATFORM FOR FUELS AND CHEMICALS PRODUCTION FROM CELLULOSIC BIOMASS, SUGARS ARE USUALLY PRODUCED AS HYDROLYSIS PRODUCT AND FERMENTATION SUBSTRATE FOR FURTHER CONVERSION TO BIOFUELS. WE PROPOSE A SUGAR ALDONIC ACID BASED BIOREFINERY CONCEPT, IN WHICH CELLOBIONIC ACID (CBA) SERVES AS THE MAIN HYDROLYSIS PRODUCTS, THE MAIN FERMENTATION SUBSTRATE AND THE PRETREATMENT AGENT. AS ILLUSTRATED IN FIGURE 1, THE FEEDSTOCK WILL GO THROUGH A CBA PRETREATMENT FIRST. THE PRETREATED SOLIDS WILL THEN BE CONVERTED TO CBA BY AN ENGINEERED FUNGAL STRAIN THROUGH AEROBIC FERMENTATION WITHOUT ANY ENZYME ADDITION. THE RESULTING CBA WILL BE RECOVERED THROUGH A PATENTED ELECTRODEIONIZATION (EDI) PROCESS AND USED AS THE SUBSTRATE FOR SUBSEQUENT FERMENTATION TO PRODUCE FUELS AND CHEMICALS AS WELL AS FOR USE AS THE PRETREATMENT AGENT. DURING THE PRETREATMENT PROCESS, CBA WILL BE HYDROLYZED TO GLUCOSE AND GLUCONIC ACID (GA) THE PROPOSED NEW CBA-BASED BIOREFINERY DIRECTLY TARGETS THE BOTTLENECKS OF CONVENTIONAL CELLULOSIC BIOMASS PROCESSING, WHICH ARE THE HIGH-COSTS OF PRETREATMENT AND CELLULASE ENZYMES. THIS NEW TECHNOLOGY IS EXPECTED TO REDUCE THE PROCESSING COSTS OF A CELLULOSIC BIOREFINERY. SPECIFIC TASKS INCLUDE: 1) ENGINEERING MYCELIOPHTHORA THERMOPHILAFOR CBA PRODUCTION FROM CELLULOSE, 2) DEVELOPING A PRETREATMENT PROCESS USING CBA AS THE PRETREATMENT AGENT, 3) DEVELOPING A SOLID-STATE FERMENTATION PROCESS FOR CBA PRODUCTION FROM PRETREATED CELLULOSIC BIOMASS, 4) RECOVERING CBA FROM THE FERMENTATION BROTH BY ELECTRODEIONIZATION, AND 5) DEVELOPING A TECH-ECONOMIC MODEL FOR EVALUATING THE COSTS OF SUGAR AND SUGAR ACID PRODUCTION USING THE NOVEL PROCESS.