Argonne researchers are partnering with industry and other national laboratories to develop biorefineries that compete economically with oil refineries. One of the world's most touted bioproducts is ethanol. Its production is increasing by 20 percent annually, and last year the nation produced 4 billion gallons. Argonne is working with Archer Daniels Midland Company (ADM) to optimize a separative bioreactor that converts sugar from corn into chemicals. The Argonne-ADM effort currently focuses on demonstrating the fermentation of gluconic acid on a commercial scale. Gluconic acid is produced by fermenting glucose, a type of sugar. This reaction has been known for more than 100 years. Argonne believes that a similar biogas strategy could also be used to produce ethanol directly. In parallel projects, Argonne is developing microorganisms and chemical catalysts to convert the gas to ethanol. At the same time, Argonne is working on new ways to recover the ethanol from the fermentation broth. This research is supported jointly by the U.S. Dept. of Energy's Office of the Biomass Program and ADM.