This study describes a pioneering industrial-scale experience by Tobasa in ethanol production from the amylaceous flour obtained by mechanical processing of the babassu mesocarp. Technical aspects related to enzymatic and fermentation processes, as well as overall economical aspects, are discussed. When produced in a small-size industrial plant (5000 L/d), babassu ethanol has a final cost of about $218/m(3). The impact of raw materials, production, and processing (enzymes, steam, energy, and so on) on the final product cost is also presented. Babassu coconut ethanol can be produced at low cost, compared with traditional starchy raw materials or sugar cane. The net profitability of ethanol production is about 40% for babassu coconut and just 10% for sugar cane. If the estimated renewable babassu resources were entirely industrially used, 1 billion L/yr of ethanol could be produced, which would roughly correspond to 8% of the current Brazilian ethanol production.