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Bioethanol process using cellulosic materials have been emerging an interesting field with a high potential of replacing petroleum-based fuel, as a future alternative. This work emphasised on improvement of enzymatic hydrolysis of alkaline NaOH-pretreated cellulose by applying an ultrafiltration membrane 10 kDa cutoff in order to minimise sugar inhibition on enzymes, reuse enzyme in hydrolysis and recover sugar for the subsequent fermentation. An improvement in the methodology of the enzymatic hydrolysis with ultrafiltration was made that the membrane was installed at the end of a tube connecting with a peristaltic pump to continuously remove glucose from hydrolysis reaction hence sugar was unable to inhibit enzyme activity and enzyme was retained inside the reactor for the reusing purpose. The combination of NaOH 1M alkaline pretreatment, enzymatic hydrolysis of cellulose with the optimum 3% enzyme dosage, ultrafiltration 10 kDa cutoff was evaluated to obtain the highest sugar concentration at 9 mg/ml after 6 hour hydrolysis. In comparison between hydrolysis with ultrafiltration and hydrolysis without ultrafiltration, the sugar concentration in hydrolysis with ultrafiltration was very much higher than that in hydrolysis without ultrafiltration in all enzyme dosages (1.5%, 3%, 6%). The hydrolysis with filtration produced a time profile in six hours with continuously significant increase in the sugar concentration. Only a small reduction initially for 1.5% dosage and no reduction in sugar concentration in 3% and 6% dosages. Hence the effect of product inhibition in hydrolysis was minimised as a result. In addition, a direct relationship between …