AbstractThe aim of this study was to evaluate the potential of a new, straw-based fibre manufacturing technology integrated to bioenergy and biofuels production. The process is based on a novel hot water treatment and subsequent mechanical refining, both of which are performed at a high temperature. Soda process, ethanol production, and chemical defibration based on hot water treatment and subsequent alkaline peroxide bleaching were selected as references. The idea is to utilise the fibre fraction for packaging and the dissolved solids and the formed fines for energy. The investment costs of this process are significantly lower than those of a soda process. Additionally, a chemicals recovery process is unnecessary. Furthermore, the process offers an attractive alternative for biogas production. However, the assessment showed that the process could only be economical in some terms. Subsidies for investment would probably be needed to promote the acceptance of this environmentally safe process.