Although the acetone-butanol-ethanol fermentation of Clostridium acetobutylicum is currently uneconomic, the ability of the bacterium to metabolize a wide range of carbohydrates offers the potential for revival based on the use of cheap, low-grade substrates. We have investigated the uptake and metabolism of lactose, the major sugar in industrial whey waste, by C. acetobutylicum ATCC 824. Lactose is taken up via a phosphoenolpyruvate-dependent phosphotransferase system (PTS) comprising both soluble and membrane-associated components, and the resulting phosphorylated derivative is hydrolyzed by a phospho--galactosidase. These activities are induced during growth on lactose but are absent in glucose-grown cells. Analysis of the C. acetobutylicum genome sequence identified a gene system, lacRFEG, encoding a transcriptional regulator of the DeoR family, IIA and IICB components of a lactose PTS, and phospho--galactosidase. During growth in medium containing both glucose and lactose, C. acetobutylicum exhibited a classical diauxic growth, and the lac operon was not expressed until glucose was exhausted from the medium. The presence upstream of lacR of a potential catabolite responsive element (cre) encompassing the transcriptional start site is indicative of the mechanism of carbon catabolite repression characteristic of low-GC gram-positive bacteria. A pathway for the uptake and metabolism of lactose by this industrially important organism is proposed.The acetone-butanol-ethanol (ABE) fermentation of Clostridium acetobutylicum was a classical method to produce the commercially important solvents acetone and butanol, which operated successfully at an industrial scale in many countries during the first half of the 20th century. After the Second World War, the fermentation process declined because of the emergence of the competitive petrochemical-based synthesis of the solvents (18). Nevertheless, oil is a finite commodity and global oil prices are on the rise, and this, coupled with a general worldwide interest in exploiting renewable resources, has stimulated research on the biochemistry and physiology of solventogenic clostridia in recent years, with the aim of exploring the potential for revival of the ABE fermentation (17, 22). A major consideration in any bioconversion process is the availability of a cost-effective and high-product-yielding growth medium, whereby there is maximal conversion of the available carbon into the commercial end product. The substrate of choice in the traditional industrial ABE fermentation, molasses, accounted for more than 60% of the overall cost of the process (19). However, the clostridia are metabolically versatile with respect to carbohydrate utilization and the potential therefore exists to exploit alternative, cheaper, low-grade substrates.Several clostridial strains are able to produce solvents by fermentation of whey (21), which has been shown to be economically superior to the traditional process (19). Despite low reactor productivity, an attractive feature of these fermenta...