Biobutanol has conventionally been generated by fermentation of carbohydrates derived from biomass (starch or sugar-based feedstock, such as corn) using Clostridia strains (mainly C. beijerinckii and C. acetobutylicum) under anaerobic conditions in batch mode. Under these premises, it has been tough for the acetone-butanol-ethanol fermentation to compete with petro-butanol production from an energy efficiency and material consumption standpoint. Challenges for butanol production from biomass comprised high cost of feedstock, scarcity of hyper-butanol producing bacteria and low butanol yield, volumetric productivity and titre, leading to high water usage and separation-purification costs. This article is an up-to-date review on several under explored sections, such as optimization of fermenter feed, microbial culture responsible for solvent production (co-culture techniques and electro-biochemical process), latest recovery techniques and the studies integrating in situ continuous fermentation processes. Biobutanol refinery way forward should build upon the use of low-cost lignocellulosic matter and zero cost organic wastes and by-products from food, agriculture, forestry, fermentation and paper industries as feedstock; optimized fermentation of such diversified feed with appropriate hyper-butanol producing strains in biofilm reactors and integration of fermentation step with hybrid high butanol-selective recovery techniques. Copyright (c) 2015 John Wiley & Sons, Ltd.