A strain of Serratia sp. showed intracellular electron-transparent inclusion bodies when incubated in the presence of citrate and glycerol 2-phosphate without nitrogen source following pre-growth under carbonlimitation in continuous culture. 1.3 mmoles of citrate were consumed per 450 mg of biomass, giving a calculated yield of maximally 55% of stored material per g of biomass dry weight. The inclusion bodies were stained with Sudan Black and Nile Red, suggesting a lipid material which was confirmed as polyhydroxybutyrate (PHB) by analysis of molecular fragments by gas chromatography and by FTIR spectroscopy of isolated bio-PHB in comparison with reference material. Multi-parameter flow cytometry in conjunction with Nile Red fluorescence, and electron microscopy, showed that not all cells contained heavy PHB bodies, suggesting the potential for increased overall yield. The economic attractiveness is enhanced by the co-production of nanoscale hydroxyapatite (HA), a possible high-value precursor for bone replacement materials.