Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)The Virtual Sugarcane Biorefinery (VSB) is a simulation and evaluation tool designed to assess the development of new technologies and innovations in the production and processing of biomass. The VSB integrates computer simulation platforms with economic, social, and environmental evaluation tools to assess the sustainability impacts of different sugarcane biorefinery alternatives. It considers all phases of the process, from sugarcane production and conversion to products use and disposal. The VSB can evaluate the stage of development of new technologies and perform comparative assessments of biorefinery alternatives, which make it a tool with great potential to support the formulation of political policies in the context of bioenergy. To demonstrate the potential of VSB, two scenarios are examined: (1) the optimization of first-generation plants and straw recovery for maximal electricity generation; and (2) the assessment of ethanol production from sugarcane lignocellulosic materials (2G process) integrated with a first-generation process that uses the sugar directly. Results show that cogenerating electricity improves profitability and decreases risks, which enables sugarcane facilities to achieve better economic results. Straw recovery plays an important role in maximizing electricity generation and requires additional investigation. Capital, biomass, and enzyme costs currently account for almost 90% of 2G ethanol production costs and must be lowered to improve the economic competitiveness of 2G ethanol. Given the importance of sugarcane-based energy for Brazil's economy and energy matrix, policies that accelerate the development of 2G processes are required to increase the industry's competitiveness and sustainability. © Copyright 2016, Mary Ann Liebert, Inc. 2016.12 6267CAPES, Conselho Nacional de Desenvolvimento Científico e TecnológicoCNPq, Conselho Nacional de Desenvolvimento Científico e Tecnológico2010/17139-3, FAPESP, Conselho Nacional de Desenvolvimento Científico e Tecnológico2011/51902-9, FAPESP, Conselho Nacional de Desenvolvimento Científico e TecnológicoConselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)