Fermentation medium was designed for production of ethanol and acetic acid from synthesis gas by “Clostridium ragsdalei”, also called Clostridium strain P11, which reduced the production cost by 95% compared to the standard medium. The medium was developed by serial deletion of components from the standard medium used for isolation and growth of the bacterium. Cost and purpose of individual components in the designed medium were considered to guide the revision of the medium recipe. This process resulted in the elimination of Morpholinoethanesulfonic acid (MES), a buffer used to maintain the pH near 6.0. Instead, a buffer was formed from the acetic acid produced during the fermentation and addition of bicarbonate, keeping the pH around 4.75 to enhance ethanol production. The performance of fermentation without MES, with pH control using acetate buffer was similar to that from the original rich medium. Additionally, yeast extract, an undefined growth promoter, was eliminated and trace metals for medium preparation were prepared in dilute solution without chelating agents. Fermentation without yeast extract resulted in lower growth, but comparable initial substrate uptake and production rates. Further, omission of cysteine from the medium and dependence on sulfide as nutrient sulfur source enhanced ethanol production, but did not sustain growth of strain P11. The control of pH in the designed medium and selection of appropriate sources of elemental nutrients is expected to enhance fermentation performance and further decrease cost.