Novel methylene tetrahydromethanopterin (H 4 MPT) dehydrogenase enzymes, named MtdC, were purified after expressing in Escherichia coli genes from, respectively, Gemmata sp. strain Wa1-1 and environmental DNA originating from unidentified microbial species. The MtdC enzymes were shown to possess high affinities for methylene-H 4 MPT and NADP but low affinities for methylene tetrahydrofolate or NAD. The substrate range and the kinetic properties revealed by MtdC enzymes distinguish them from the previously characterized bacterial methylene-H 4 MPT dehydrogenases, MtdA and MtdB. While revealing higher sequence similarity to MtdA enzymes, MtdC enzymes appear to fulfill a function homologous to the function of MtdB, as part of the H 4 MPT-linked pathway for formaldehyde oxidation/detoxification.Formaldehyde detoxification is a metabolic function essential to all of life, due to the extreme toxicity of formaldehyde (4, 12). However, in methylotrophic bacteria formaldehyde oxidation is a part of their central metabolism (1). One of the most widespread modes of formaldehyde oxidation in methylotrophs is the pathway that involves tetrahydromethanopterin (H 4 MPT) as a cofactor (28,30). Most of the enzymes involved in this pathway are homologous to the enzymes involved in methanogenesis by the Archaea (6, 9). However, one enzyme in the pathway, an NAD(P)-linked methylene-H 4 MPT dehydrogenase (MtdB), is unique to Bacteria (14, 15). MtdB has evolved independently of the archaeal functional counterparts that are linked to H 2 or cofactor F 420 (26), based on the lack of sequence similarity (9, 15). Enzyme properties and mutant analyses have demonstrated that MtdB fulfills a dual physiological role in methylotrophic metabolism, in energy generation (in the form of NADH) and in formaldehyde detoxification (9,14,15,21,28). In some methylotrophs, so far only in methylotrophs employing the serine cycle for formaldehyde assimilation, a paralog of MtdB is present, an NADP-linked methylene-H 4 MPT/methylene-tetrahydrofolate (H 4 F) dehydrogenase (MtdA) (7,10,28,29). Experiments with Methylobacterium extorquens AM1, including protein purification and analysis, mutant analysis, and flux analysis, all suggested that in vivo, the main function of MtdA is in reducing methenyl-H 4 F to methylene-H 4 F, which feeds into the serine cycle (7,23,25,28,29). MtdA also has a secondary function, in general metabolism (purine biosynthesis, etc.) in the serine cycle methylotrophs that do not possess FolD (7, 23), the enzyme fulfilling this function in most bacteria and eukaryotes (20). Heterologously expressed folD was shown to complement the function of mtdA in general metabolism, but not in methylotrophy (23).The origin and the evolutionary history of MtdA and MtdB remain poorly understood. While MtdA reveals low levels of sequence similarity to FolD enzymes (15% identity at the amino acid level [7,29]), MtdB shares no similarity with FolD (15). However, the two paralogs reveal a significant level of similarity to each other (about 30% at the a...