limits of metabolic engineering
=chemistry =biochemistry =metabolic engineering
Genetic engineering can be used to get microbes to convert sugar to a wide variety of complex chemicals with good efficiency. So, is that the future of industrial chemistry? Yes, but only to a limited extent.
limits of enzymes
Enzymes are catalysts, and 
	operate under the same physical principles and fundamental limitations that 
	other catalysts do. They're very good catalysts in some ways, but their 
	advantages are also linked to some limitations.
Enzymes have very 
	good selectivity. They can act on very dilute and very specific molecules 
	and rarely act on others. That selectivity requires binding strongly to 
	their substrates, which also requires that they bind strongly to their 
	products for most reactions to happen, which means that most enzymes act 
	very slowly when the concentration of their products is high. This strong 
	binding to substrates also requires complex structures.
Enzymes can 
	do reactions at low temperature, but this requires complex structures, which 
	makes enzymes unstable at high temperatures. This means reactions can't 
	usually be driven by heat differences.
To summarize, enzymes can work 
	at low concentrations and low temperatures, but for the same reasons, they 
	can usually only work at low concentrations and low temperatures.
limits of genetic engineering
If you take a microbe, and add in 
	an enzymatic process that greatly reduces its growth and has no benefits, 
	then that microbe will quickly evolve to downregulate those enzymes.
	It's possible to make high-value products unrelated to core metabolism, like 
	monoclonal antibodies, but it's very expensive. If you want to get high 
	concentrations and high yields of chemicals from fermentation, they need to 
	be primary metabolic products.
For something to be a primary 
	metabolic product, production of it needs to produce net ATP. This is a 
	fairly restrictive criteria for anaerobic fermentation. If you start adding 
	oxygen, then your microbes definitely have ways to make ATP without making 
	your product, and it becomes more difficult to keep them from doing less of 
	that. Also, you need to actually get the oxygen to cells, and that can be a 
	big challenge. It's not so bad for fermentation making citric acid, where 
	you can use small bubbles and mixers and only need a little oxygen, but if 
	you want to, say, grow organs in a tank without a heart and circulatory 
	system and lungs, getting oxygen to the cells is a huge problem.
input costs
Fermentation of sugar produces at 
	most 53% of its mass in ethanol and ethanol has 65% the energy per mass of 
	gasoline. So, if sugar is $300/ton, it takes at least $870 worth of sugar to 
	make ethanol fuel equivalent to a ton of oil. That's not particularly cheap, 
	and it doesn't account for the costs of fermentation or distillation.
	
Methanol is cheaper per joule than sugar, and it's theoretically 
	possible to make some fermentation products from methanol, but the options 
	are more limited than with sugar, and this approach isn't used yet 
	industrially. There's currently no economic incentive to pursue it now, 
	either, considering US corn subsidies and the development costs.
toxicity
Ethanol is, by far, the chemical 
	most produced by industrial fermentation. Final concentration reaches ~11%. 
	Distillation of ethanol afterwards is energy-intensive and expensive, though 
	still less expensive than the sugar used.
Most chemicals are more 
	toxic than ethanol and harder to separate. Propanol is substantially more 
	toxic than ethanol to cells. Butanol is substantially more toxic than that. 
	A lot of compounds that could be made by fermentation are toxic to microbes 
	at <1% concentrations.
separation
distillation
Ethanol separation by 
	distillation is currently the cheapest separation of a fermentation product.
	
Distillation is only feasible for small molecules with low boiling 
	points. (For example, succinic acid is valuable and easy to make with 
	fermentation, but because it can't be distilled out, it's too expensive to 
	separate.) That's a very limited set of choices, and small molecules are 
	also easy to make without using fermentation. The high selectivity of 
	enzymes is more valuable for more complex products with more synthesis 
	steps.
phase separation
Ethanol is toxic largely because, 
	being partly polar and partly nonpolar, it disrupts cell membranes. What if 
	you make some really hydrophobic compounds and try to get them to phase 
	separate? For example, pinene, 
	or some other terpene. 
	(Let's set aside the ATP requirements of making the
	DMAPP 
	used to make those.)
Most proteins need hydrophobic regions. If you 
	have hydrophobic compounds at a concentration where they would spontaneously 
	phase separate, they'll first go into proteins and disrupt them. So, you 
	generally can't produce terpenes by fermentation to a concentration where 
	they'll phase separate.
How, then, are organisms able to accumulate 
	hydrophobic compounds? How does an oil palm fruit contain so much oil? Those 
	compounds are generally stored in special organelles called
	lipid droplets. 
	It's only by first accumulating oil in those then mechanically squeezing it 
	out that pure oil can be produced. (Yes, I know, there are also soluble 
	particles of fatty acids held by
	lipoproteins.)
	
(Speaking of oil palms, they require less land for a given amount of oil 
	production than other plant oils, and there's nothing inherently more 
	environmentally destructive about them, so I think the recent moral panic 
	about palm oil as an ingredient is questionable.)
Could the same 
	approach be used artifically? Yes, it's possible to put porous polymer beads 
	in a fermentation tank, use those to absorb oils, and then squeeze out the 
	oils. But, of course, that's expensive.
It's also possible to 
	accumulate hydrophobic compounds in lipid droplets in the microbes used, but 
	that's generally limited to <50% of the cell mass, while fermentation of 
	sugar to ethanol produces several times the mass of cells in ethanol. 
	Growing sugarcane to grow microbes to squeeze for oil is less efficient, and 
	thus much more expensive, than growing plants to squeeze for oil.
extraction
A much cheaper approach than 
	polymer beads is liquid-liquid extraction followed by distillation. For 
	example, making isobutanol by fermentation, extraction with xylene, and then 
	distillation. That's sometimes cheaper than direct distillation, but while 
	product concentration in water is less important, it's still an issue: if 
	it's low, (say, 0.1%) then mass transfer will be relatively slow.
	Another issue with this approach is toxicity of the extractant; usually it 
	just reduces growth rate, but this does limit your choices. You also don't 
	want to be losing too much extractant in fermentation broth effluent.
	
It's still necessary to separate the product from the extractant, and 
	usually this is done by distillation, which requires that both things have 
	suitable boiling points.
precipitation
It's possible to precipitate 
	products during fermentation. For example, tyrosine has a low enough 
	solubility to do that. Unfortunately, this doesn't necessarily make 
	separation easy. When tyrosine precipitates during fermentation, it forms 
	tiny needles that stick to bubbles, and you get a messy foam.
Taking 
	this approach, some other possible problems are solid coatings forming on 
	valves and tiny crystals that stick to cells. Most ionic compounds from 
	fermentation will have a large enough
	zeta potential 
	(surface charge resulting from one type of ion dissolving more than the 
	other) that particles won't flocculate.
Of course, it's possible to 
	collect those solid products; it's just more expensive than distillation. 
	This is also obviously limited to things that precipitate before they become 
	toxic, which is a fairly restrictive criteria.
membranes
Cows ferment grass and get net 
	energy from the fermentation products. How do cows handle the product 
	separation problem?
Cow rumens get products through, basically, 
	membranes. They have a lot of surface area, and they're self-cleaning; doing 
	the same thing with artificial polymer membranes would be too expensive. The 
	lining also actively transports things like lactate and butyrate, using
	
	monocarboxylate transporters; that's not practical to copy artificially.
	
To what extent are membranes feasible for separating fermentation 
	products? I'm not actually sure how well people will be able to deal with 
	fouling issues, but in the short term, I doubt that direct pressure driven 
	membrane separation of fermentation products will be economically feasible.
conclusion
There are a lot of issues with producing industrial chemicals by fermentation. And yet, I still think it's an important topic, and will be much more widely used in the future than it is now. The point of this post is that it's a challenging problem, and that there are major limitations which mean "conventional" (non-fermentation) chemical processing will still be needed.