Carbon-neutral materials, which do not affect the density of CO2 in the atmosphere even if they burn, have attracted much attention form the viewpoint of environmental friendliness. In this study, lignocellulose/epoxy composites were newly prepared as carbon-neutral insulation materials, and their properties were evaluated. Hydrothermal reaction lignocellulose, which is composed of lignin and crystalline cellulose, was prepared by a treatment of corncob under high-pressure hot water at 190°C, 1.8 MPa for 10min. The 13C-NMR spectra showed that the amounts of non-crystalline cellulose in the hydrothermal reaction lignocellulose were less than those of non-hydrothermal reaction lignocellulose. Moreover, hydrothermal reaction and oligoesterification lignocellulose was obtained by a reaction of maleic anhydride and glycidyl ether with the hydrothermal reaction lignocellulose. The epoxy resin containing the hydrothermal reaction and oligoesterification lignocellulose had lower water absorption and viscosity than those of the epoxy resin containing the non-hydrothermal reaction lignocellulose. The epoxy resin containing the hydrothermal reaction and oligoesterification lignocellulose with SiO2 fillers showed an insulation breakdown strength as same as conventional material (an epoxy resin containing SiO2 fillers). In addition, mechanical and thermal properties of the epoxy-based composite were also comparable with a conventional material. Therefore, the epoxy-based composite seems to be a candidate as practical carbon neutral insulation materials.