In dry mill ethanol plants, thin stillage is a low value liquid stream that remains after recovery of the ethanol. Clarification of the thin stillage (removal of solids) and production of a value-added product would be desirable. Fungi are excellent candidates to explore for such a bioprocess due to their general tolerance to lower pH, ability to utilize a broad range of carbon sources and historical use as single-cell-proteins (SCP) or other foods. The objective of this CRADA project was to identify a fungal strain and develop a fungal bioprocess that would utilize components of the thin stillage to produce a clarified water stream suitable for recycle to the ethanol fermentation and also produce SCP as a valuable by-product for animal feed applications.