Process development, cheaper bioreactor cost, and faster fermentation rate can aid in reducing the cost of fermentation. In this article, these ideas were combined in developing a previously introduced textile bioreactor for ethanol production. The bioreactor was developed to utilize flocculating yeast for ethanol production under anaerobic conditions. A mixing system, which works without aerators, spargers, or impellers, but utilizes the liquid content in the bioreactor for suspending the flocculating yeast to form a fluidized bed, was developed and examined. It could be used with dilution rates greater than 1.0 h−1 with less possibility of washout. The flow conditions required to begin and maintain a fluidized bed were determined. Fermentation experiments with flow rate and utilization of the mixing system as process variables were carried out. The results showed enhanced mass transfer as evidenced by faster fermentation rates on experiments with complete sucrose utilization after 36 h, even at 30 times lesser flow rate.