Lignocellulosic ethanol has obstacles in the investment costs and uncertainties in the process. One solution is to integrate it with the running dry mills of ethanol from grains. However, the economy of these mills, which dominate the world market, are dependent on their by-products DDGS (Distiller's Dried Grains and Solubles), sold as animal feed. The quality of DDGS therefore must not be negatively influenced by the integration. This puts restraints on the choice of pretreatment of lignocelluloses and utilizing the pentose sugars by food-grade microorganisms. The proposed solution is to use food related filamentous Zygomycetes and Ascomycetes fungi, and to produce fungal biomass as a high-grade animal feed from the residues after the distillation (stillage). This also has the potential to improve the first generation process by increasing the amount of the thin stillage directly sent back into the process, and by decreasing the evaporator based problems. (C) 2014 The Authors.