Metabolic pathways for the production of higher alcohols exist in naturally occurring microorganisms. Yeast naturally produce isobutanol, 2-methyl-1-butanol, and 3-methyl-1-butanol. Transferring the existing and related pathways into suitable hosts and optimizing performance using biotechnology tools allows for high yield, high volumetric productivity and high concentration production of these compounds. We have engineered a microorganism that produces isobutanol at high volumetric rates and high yield on sugar. This microorganism is being used in pilot plant scale-up and engineering validation research. Plans to utilize the microorganism in a million gallon per year demonstration are under development. This presentation reviews the pathways for production of four and five-carbon alcohols, shows progress in the pilot production of isobutanol and plans for demonstration of isobutanol technology at the million gallon per year scale.