Qingdao institute of bioenergy and bioprocess technology (QIBEBT), Chinese Academy of Sciences (CAS) and SHELL signed a Phase-II contract on the technology development for lignocellulose pretreatment. In Phase-I, the Green Chemocatalysis Group of QIBEBT and SHELL successfully developed an effective pretreatment technology for the production of fermentable sugar from lignocelluloses. Compared with traditional process (e.g. diluted acid pretreatment, hydrothermal pretreatment, etc.) this novel pretreatment process is superior with low temperature (about 98oC) and high solid concentration (about 35%). Up to now, a kiloton per year pretreatment system was established. Via this novel pretreatment process, a glucan conversion of 90% can be achieved. In order to assess the potential of the novel process, SHELL and CAS-QIBEBT signed a Phase-II contract to further optimize the entire pretreatment technology, prior to going into development. The phase-II research includes: expansion of the feedstock adaptability for the process, waste recycling, optimization of the enzymatic hydrolysis, techno-economic analysis of the integrated process, exploration of new equipment line-up, etc.