NOVELTY - Producing (M1) ethanol through fermentation of organic starting materials, involves using one or more fungi belonging to the Chalara sp. and are capable of metabolizing pentose compounds.    USE - (M1) is useful for producing ethanol through fermentation of organic starting materials, where the starting material is chosen from wood or non-wood plant materials; waste or by-products from forestry, such as wood chips, saw dust etc.; solid or liquid effluents or by-products from pulp and paper industry, such as wood hydrolysates; solid or liquid effluents or by-products from food and feed industry, e.g., effluents or by-products containing cellulose, hemicellulose, sugar or starch; solid or liquid waste or by-products from agriculture; and other waste or by-products streams or their components comprising compounds that can be fermented to produce ethanol, where the starting materials are in treated or untreated form. (M1) preferably involves producing ethanol from a starting material consisting substantially of waste or by-products from forestry, using one or more fungi belonging to Chalara sp. and capable of metabolizing pentose compounds, where the starting material comprises spent liquor (waste liquor) from pulping (claimed). The ethanol produced by (M1), is useful as a replacement for fossil fuels.    ADVANTAGE - (M1) enables effective production of ethanol from biomass, economically and eco-friendly. The existing bioreactors can be used for production of ethanol with only minor changes, thus there is no expense for rebuilding existing bioreactors. The low cost feed such as different types of waste, not utilized in the production of ethanol is utilized in ethanol production. The improved fermentation is achieved without restoring genetic modification of the microorganisms.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are also included for:    (1) a starter culture (I) used in (M1), comprising Chalara parvispora and one or more fungi chosen from Trametes sp., Trichoderma sp., Thielavia sp., Postia sp., Gloeophyllum sp., Phanerochaete sp. and their combination; and    (2) a growth medium (II) for the fungus used in (M1), comprising calcium chloride dihydrate at a final concentration (in g/l) (0.0130), magnesium sulfate heptahydrate (0.030), dipotassium hydrogen phosphate (0.95), dihydrogen sodium phosphate dihydrate (0.80), D-xylose (25), D-mannose (25), D-galactose (25), ammonium chloride (0.5) and salts (0.040).