The objective of the paper is to discuss the potential of cellulosic ethanol production processes and compare them, to find the most appropriate production method for Latvia`s situation, to perform theoretical calculations and to determine the potential ethanol price. In addition, price forecasts for future cellulosic and grain ethanol are compared. A feasibility estimate to determine the price of cellulosic ethanol in Latvia, if production were started in 2010, was made. The grain and cellulosic ethanol price comparison (future forecast) was made through to the year 2018.