The 5-year investigation on the dilute acid hydrolysis of waste cellulose to glucose has emphasized the crucial step of continuously converting cellulose to glucose. Initial batch studies emphasized pretreatments to improve accessibility of the cellulose, and established suitable reaction conditions. Later a 1-ton/day pilot plant was designed and constructed based on the application of a Werner & Pfleiderer Twin Screw Extruder Reactor to demonstrate this approach. The process was tested using paper pulp (at 10% solids) and dry hardwood sawdust (at 95% solids). Attractive energy efficiencies and high conversion yields resulted. Up to 60% glucose conversion was achieved, based on the available cellulose values without pretreatment. The report presents a scheme for a continuous, production-scale acid hydrolysis-fermentation facility based on a waste cellulose feedstock for production of fuel-grade ethanol.