A crude cell extract from a butane-utilizing bacterium, Alcaligenes sp., catalyzed the oxidation of butane to butanol coupled to NADH. A graphite electrode modified with Neutral Red (NR-electrode) catalyzed the reduction of NAD(+) to NADH. About 4.9 mM butanol was produced from 50% n-butane/O-2 mixture through the combined reactions of the crude enzyme and the NR-electrode in 250 ml reactor for 3 h.