Early investigations into the potential applications of methylotrophs focused mainly on the use of methane and methanol as cheap feedstocks for the production of single cell protein, and until recently this possibility was still being investigated. Despite the decline of this initial interest, the spin‐offs in terms of fundamental biochemical and genetic information, fermentation systems, and bioreactor design have opened up other avenues, either for products where substrate costs are paramount (e.g. amino acids), products originating from some of the unique features of C
1
metabolism (e.g. enzymes) or fortuitous discoveries (e.g. the
Pichia pastoris
expression system). After considering fundamental aspects of metabolism and energetics of methylotrophs and their implications for product formation, this review follows these subdivisions in turn, endeavoring to assess their future potential.