There is a worldwide effort to make economically feasible the use of lignocellulosic biomass for production of biofuels. In sugarcane industry, cane juice (sucrose) is fermented for bioethanol production. Sugarcane bagasse is used as fuel in cogeneration systems, to produce steam and electric power to the plant, and the surplus of electric power may be delivered to the grid. The hydrolysis of bagasse to produce second generation ethanol poses a challenge: how much bagasse can be diverted, since the process must continue energetically self-sufficient. This work presents a computational tool developed within an equation-oriented process simulator that couples the simulation of first and second generation bioethanol production with a global optimization algorithm. The tool was robust, optimizing the steady state process in any economic scenario and for different process configurations. Four case studies are presented, and their implications on process internal demands and on the surplus electrical power are discussed. (C) 2012 Elsevier Ltd. All rights reserved.