TECHNOLOGY FOCUS - BIOTECHNOLOGY - Preferred Method: In (M1), the fungus is capable of metabolizing both pentose and hexose compounds.The fungus is used in mixture of fungi, where the mixture of fungi include second fungus belonging to the Trametes sp., preferably Trametes versicolor.The mixture of fungi further include one or more fungi chosen from Trichoderma sp., Thielavia sp., Postia sp., Gloeophyllum sp., Phanerochaete sp. and their combination. The mixture of fungi include Chalara parvispora, Trametes versicolor, and at least one of Trichoderma viride, Thielavia terrestris, Postia placenta, Gloeophyllum trabeum and Phanerochaete chrysosporium, or their combination.The fungus or mixture of fungi is used in combination with at least one yeast, where the yeast belongs to Saccharomyces sp., preferably Saccharomyces cerevisiae.The fungus or mixture of fungi is added prior to, or substantially simultaneously with the addition of the yeast. The fermentation is performed as batch fermentation, or continuous or semi-continuous fermentation, where the starting materials and/or nutrients are added during fermentation. The pH of the starting material is 4.5-7, preferably 5.5-6.5 and most preferably 6.The fermentation is performed is carried out at a temperature range of 20-40 degreesC, preferably 26-36 degreesC.Preferred Culture: (I) comprises Chalara parvispora, Trametes versicolor and at least one of Trichoderma viride, Thielavia terrestris, Postia placenta, Gloeophyllum trabeum and Phanerochaete chrysosporium or their combination. (I) further comprises a yeast.Preferred Growth Medium: (II) further comprises starch at a final concentration of 25 g/l. SPECIFIC MICROORGANISMS - Specifically claimed is the fungus is Chalara parvispora (claimed).    EXAMPLE - Ten bottles containing 100 ml of pulp waste obtained from Swedish pulp and paper mill was used. The mixture of fungi that includes Chalara parvispora and Trametes versicolor, was allowed to grow in wood hydrolysate for 24 hours, in order for the fungi to adapt to pulp waste before the start of experiment. Three bottles containing YEP-medium were inoculated with Saccharomyces cerevisiae only and 3 bottles were inoculated with both Saccharomyces cerevisiae and a mixture of fungi. The remaining 4 bottles containing YEP-medium and both the microorganisms were taken as control. All the bottles were kept under anaerobic atmosphere by flushing with argon, and incubated at 27 degrees C, with shaking (15-20 rpm/minute). The amount of ethanol produced was measured after 164.8 hours using gas chromatography. The results showed that the amount of ethanol produced by S.cerevisiae, mixture of fungi and pulp waste was found to be (in g/l) (23.43), when compared to (5.84) produced by S.cerevisiae and pulp waste.