A continuous bioreactor where cells were recycled using a cross-flow microfiltration (CFM) membrane plant was investigated for the production of solvents (ABE fermentation) from whey permeate using Clostridium acetobutylicum P262. A tubular CFM membrane plant capable of being backflushed was used. The continuous fermentations were characterized by cyclic solventogenic and acidogenic behaviour, and ultimately degenerated to an acidogenic state. Steady-state solvent production was obtained for only short periods. This degeneration is attributed to the complex morphological behaviour of this strain of organism on this substrate. It is postulated that to achieve steady-state solvent production over extended periods of time, it is necessary to maintain a balance among the various morphological cell forms, i.e. acid-producing vegetative cells, solvent-producing clostridial cells, and inert forms, e.g. spores.