The hydrolytic enzyme dosage required for efficient cellulose hydrolysis during the cellulose-to-ethanol („Cellulosic Ethanol“) process is very high and the cost of enzymes is a significant factor in overall biorefinery operating costs. Thus, the development of cost-effective hydrolytic enzymes is critical to the success of a commercial ethanol process. One of the approaches for reducing the enzyme production costs is the use of alternative low-cost carbon sources (e.g. lignocellulose hydrolysates comprising glucose, xylose, and arabinose). Currently, one of the major technological approaches requires addition of costly (hemi)cellulase-inducing carbohydrates into Trichoderma fermentation media. Further cost reduction could be realized if production of high-quality hydrolases can be achieved in the absence of (hemi)cellulase inducers and during fermentation on low-cost carbon sources (e.g. lignocellulose hydrolysates). The project focuses on genetic engineering of Trichoderma reesei to achieve these goals.