The waste mycelium of Penicillium chrysogenum HA-10 (obtained at the end of penicillin fermentation), or a 24-hr-old freshly grown vegetative inoculum of this organism, was found to utilize glucose for the production of calcium gluconate by submerged fermentation in shake flasks. After 72 to 96 hr of fermentation at 24 C, 90 to 95% of the reducing sugar from the 15% glucose medium was converted to calcium gluconate. Reuse of the mycelium for successive experiments reduced the fermentation period to 72 hr or less because of an enhancement of glucose utilization. Ten successive batches of 15% glucose medium were fermented by the reuse method. Fermentation media containing up to 30% glucose could be used, provided boric acid was added to prevent the precipitation of calcium gluconate formed. We found that 30% hydrol (a by-product of glucose manufacture containing 50 to 55% reducing sugar), when used in place of glucose in the fermentation medium, inhibited the rate of glucose utilization. However, this effect was partially reversed by pretreatment of hydrol with 2 to 4% activated charcoal before addition to the fermentation medium.