To alleviate the ethanol inhibition of Escherichia coli KO11 (ATCC 55124), during fermentation, online ethanol sequestration was achieved using F-600 activated carbon. Two separate schemes were tested, one involving direct addition of activated carbon to the fermentation flask for the purpose of in-situ adsorption and a second involving an externally located activated carbon packed bed. For the in-situ ethanol adsorption experiments, varying amounts of adsorbent were added to the medium at the start of the fermentation. The addition of the activated carbon in the fermentation broth resulted in increased glucose utilization and ethanol production for all flasks containing activated carbon. For the control flasks, approximately 75% of the available substrate was utilized before the fermentation was inhibited. The entire glucose supply of flasks containing activated carbon was depleted. Ethanol production was also increased from 28 g/L for the control containing no activated carbon to nearly 45 g/L (including the ethanol in the adsorbed phase) for the flasks containing activated carbon. The implementation of an externally located packed bed adsorber for the purpose of on-line ethanol removal was tested over a number of adsorption cycles to evaluate the performance of the adsorption bed and the ethanol productivity. Results indicate that maintaining ethanol fermentation medium concentrations below 20 ~ 30 g/L extends and enhances ethanol productivity. After 3 cycles over a period of 180 h, an additional 80% ethanol was produced when compared to the control experiments, despite the suboptimal acidic pH of the medium.