An iterative hybrid algorithm is proposed for the economic process optimization of a multiproduct biorefinery. The design approach is based on the construction of a process superstructure. The algorithm is based on the sequential and iterative use of Mixed Integer Linear Programming solvers and of process simulators. The MILP model takes into account the rigorous reactor modelling results obtained by separate MATLAB calculations. The optimal flowsheet separation and purification section resulting from the MILP solution is simulated by ASPEN Plus. Process yields and equipment size obtained by ASPEN Plus are updated in the MILP problem. Iterations provide the ultimate optimal flowsheet, biomass allocation and yield to products