Steel-making produces large quantities of residual H2 and CO, which can be converted into value-added commercial ethanol if problems achieving suitably high yields, selectivity and product market value are overcome. This project addresses these issues through innovations directed at: (a) high selectivity through new catalyst development; (b) very close control of the reaction temperature using high thermal conductivity, geometrically structured catalyst support; and (c) microchannel reactor architecture for high throughput.