Glycerol, the by-product of biodiesel production, is considered as a waste by biodiesel producers. This study demonstrated the potential of utilising the glycerol surplus through conversion to ethanol by the yeast Pachysolen tannophilus (CBS4044). This study demonstrates a robust bioprocess which was not sensitive to the batch variability in crude glycerol dependent on raw materials used for biodiesel production. The oxygen transfer rate (OTR) was a key factor for ethanol production, with lower OTR having a positive effect on ethanol production. The highest ethanol production was 17.5 g/L on 5% (v/v) crude glycerol, corresponding to 56% of the theoretical yield. A staged batch process achieved 28.1 g/L ethanol, the maximum achieved so far for conversion of glycerol to ethanol in a microbial bioprocess. The fermentation physiology has been investigated as a means to designing a competitive bioethanol production process, potentially improving economics and reducing waste from industrial biodiesel production.