The problem of sensor fault detection and isolation (FDI) and fault-tolerant economic model predictive control (FT-EMPC) for batch processes is addressed. To this end, we first model batch processes using subspace-based system identification techniques. The analytical redundancy within the identified model is subsequently exploited to detect, isolate, and handle the faulty measurements. The reconciled fault-free measurements are then incorporated in an economic model predictive controller formulation. Simulation case studies involving the application of the proposed data-driven FDI and FT-EMPC algorithms to the energy intensive electric arc furnace process illustrate the improvement in economic performance under various fault scenarios. (c) 2018 American Institute of Chemical Engineers AIChE J, 65: 617-628, 2019