Recycling the contents of a continuous fermenter through a stripping column is proposed as a means of reducing product inhibition and lowering the cost of fuel ethanol production. A 2-L fermenter and 10-cm packed column were continuously operated for 150 days without contamination. Some fouling of the packing with attached yeast cells was observed which partially blocked the column. Cell yield was lower than in a simple continuous fermenter. Complete conversion of 200 g/L glucose feed and 90% conversion of 600 g/L glucose feed were achieved. Data were analyzed by computerized process simulation. Cost analysis indicated that, with heat recovery to reduce heating and cooling costs, the continuous fermentor/stripper is possibly a lower-cost alternative to conventional fermentation and distillation.