The ability of fungi such as Phanerochaete sanguinea, Trametes villosa and Phanerochaete chrysosporum to produce enzymes to dissolve cell walls without direct contact with host cells were investigated. Basidiomycetes such as P. sahguinea and T. villosa were found to be able to remove lignin from cell walls and lamina. P. chrysosporum is shown to utilise all the components of cell wall simultaneously. Results from this study are intent to be used in paper production.