NOVELTY - Production of compounds, modified lignin, lignin-cellulose resinous compounds, carbon dioxide, carbohydrates and ethanol from biomass involves mixing the biomass with a recovered aqueous alkali metal hydroxide and then heating the mixture while agitating to evaporate off excess water.    USE - For production of compounds, modified lignin, lignin-cellulose resinous compounds, carbon dioxide, carbohydrates and ethanol from biomass (claimed). The carbohydrates are used for food, in the production of ethanol and as the intermediate in the production of other useful organic polymers and to produce polyols for urethane production. The lignin-cellulose resinous material or alkali metal lignin-cellulose resinous products may be used as an adhesive such as in producing plywood, in laminates, as fillers and for reaction with aldehydes, aminoplasts, phenoplasts, epoxides, ketones, furfuryl alcohol, amines, isocyanates, polyamines, polyisocyanates, mono- and polysubstituted organic compounds to produce useful resins which may be utilized as adhesives, as laminates, as coating agents, as molding agents and as foams.    ADVANTAGE - The method is economical where heat, water and alkali catalyst are recoverable and reused. Over 90% of the biomass is converted to water soluble products.    DETAILED DESCRIPTION - Production of compounds, modified lignin, lignin-cellulose resinous compounds, carbon dioxide, carbohydrates and ethanol from biomass involves mixing, heating and reacting the components by the steps of    (a) preparation of biomass;    (b) adding an aqueous alkali metal hydroxide;    (c) converting biomass;    (d) dissolving converted biomass;    (e) adjusting the pH;    (f) separating the components;    (g) crystallizing carbohydrates;    (h) fermentation;    (i) recovering ethanol;    (j) recausticing; and alkaline earth metal oxide recovery.    The step (A) involves removing water from the biomass and ground or chipped into small pieces and utilized in the amount of 100 parts by weight (pbw). The step (B) involves adding an aqueous solution of alkali metal hydroxide (20 - 40 or 25 - 50 pbw) with biomass. In the step (C), the biomass is heated to 140 degreesC to evaporate water and break the lignin-cellulose bond and then heating is continued while agitating until the biomass becomes a thick paste. In step (D), water (200 - 400 pbw) is added and mixed with the converted biomass thereby dissolving most of the converted biomass, then filtered or decanted off the non-water soluble biomass. In the step (E), an acidic salt forming compound is added to the aqueous converted biomass solution until the pH is 3 - 7. In the step (F), the lignin-cellulose resinous products are skimmed from the top of the aqueous solution and the aqueous solution containing carbohydrates and salt is filtered or decanted off the precipitated modified lignin. In the step (G), the aqueous carbohydrate and salt solution is heated to evaporate water to concentrate the solution then the carbohydrates are crystallized and precipitated out and the aqueous salt solution is filtered or decanted off. In the step (H), water is added to the carbohydrate crystals until a solution containing 15 - 40% carbohydrates, fermenting yeast is added, and the carbohydrates are fermented to produce ethanol and carbon dioxide. In the step (I), ethanol is separated from the water by evaporation or by membrane technology. In the step (J), the aqueous solution containing salts of the step (G) is heated to evaporate excess water and then placed in a furnace, optionally with a lignin, followed by burning to remove organic material, then added to water, filtered and then reacted with an alkaline earth metal oxide, to produce alkali metal hydroxide for reuse and alkaline earth metal carbonate which precipitates. In the step (K), the alkali earth metal is heated in a lime kiln to produce alkali earth metal oxide for reuse and the carbon dioxide is collected.    INDEPENDENT CLAIMS are also included for:    (1) production of the carbohydrates from biomass involving mixing, heating and reacting the components by the steps of:    (i) grinding the biomass into small particles;    (ii) adding and mixing an aqueous sodium hydroxide with the biomass;    (iii) heating the biomass to remove excess water;    (iv) heating the biomass to 140 - 200degreesC until the biomass swells and forms a thick fluid mass, carbon dioxide is given off and collected to produce a mixture of hemi-cellulose, carbohydrates, modified sodium lignin, lignin-cellulose resinous products and sodium carbonate;    (v) adding and mixing water to form a concentrated aqueous solution;    (vi) adding and mixing carbon dioxide with the aqueous solution to react with the sodium hydroxide to form sodium carbonate;    (vii) filtering the carbohydrates form crystals and filtering the aqueous solution to recover the carbohydrates;    (viii) evaporating the aqueous solution containing the modified sodium lignin, lignin-cellulose resinous products, hemi-cellulose and sodium carbonate and burning the solid materials in a furnace and adding the water to recover the sodium carbonate;    (ix) adding lime oxide and reacting with the sodium carbonate to form sodium hydroxide and calcium carbonate which precipitates and decanting the aqueous sodium hydroxide for reuse;    (x) heating calcium carbonate in a lime kiln to recover calcium oxide for reuse and collecting the carbon dioxide for reuse; and    (2) the product, ethanol produced by the step (i) - (X) and then adding water to produce a solution containing 20 - 40% carbohydrates and then yeast to the solution to ferment the carbohydrates.