Three white-rot fungi, Phanerochaete chrysosporium, Polyporus tulipiferae, and Polyporus sp. A336 were grown on 100-g amounts of chopped oat straw in gassed 4.5 L (diameter 16 cm, height 23 cm) solid-state reactors for two weeks. The different gas atmospheres were regulated by (1) air diffusion through foam plugs, (2) intermittent or continuous air flow, (3) intermittent oxygen, 50 or 100% continuous oxygen flow, and (4) continuous 10% carbon dioxide in oxygen flow. The fermented straw was analyzed for total weight loss, Klason lignin loss, and enzymatic (cellulase) hydrolysis. P. chrysosporium grown on straw in continuous oxygen at 35°C caused a 41% weight loss and 33.5% hydrolysis was obtained when the pretreated straw was hydrolyzed with cellulase enzyme. P. tulipiferae caused a 27% weight loss and 34.3% cellulase hydrolysis in the straw at 30°C. Polyporus sp. A336 selectively degraded lignin of the straw and under intermittent oxygen resulted in an 18% weight loss and 33.6% cellulase hydrolysis at 35°C. When the straw was supplemented with 10% xylose (straw basis) and was continuously gassed with 50% oxygen, Polyporus sp. A336 produced a 14.5% weight loss and 38.7% cellulase hydrolysis. Oxygen and carbon dioxide exchange rates were measured for some of these bench-scale fermentations.