This Small Business Innovation Research (SBIR) Phase I project will develop a costeffective butanol production and purification process. The specific aim of this project is to scaleup a butanol production system from a small, ?laboratory scale? ,2 liter volume, to a 200 liter culture volume in order to determine the feasibility of its utility for production of practical amounts of the valuable biofuel. The broader/commercial impacts of this research are that the process should be configurable for fuel and/or hydrogen production by individuals safely and with negligible environmental impact, and that demonstration of the feasibility of production of fuels by ?microrefineries? could foster growth of a network of ?cottage industries? devoted to local fuel and biochemicals' production that could provide increased opportunities for employment in rural areas where carbohydraterich waste streams are available. The growth of the dairy products industry in eastern South Dakota has resulted in the production of copious amounts lactosebearing whey. Given that cheese plants employ energyintensive processes and incur significant costs to reduce the biological oxygen demand of waste streams, it is expected that members of the dairy industry could become enthusiastic customers of Gaea's butanol production process, provided that this project is able to demonstrate the feasibility of using their excess lactose for the economical production of fuels that could be used onsite or sold.