Production of propionic acid by fermentation of glycerol as a renewable resource has been suggested as a means for developing an environmentally-friendly route for this commodity chemical. However, in order to quantify the environmental benefits, life cycle assessment of the production, including raw materials, fermentation, upstream and downstream processing is required. The economic viability of the process also needs to be analysed to make sure that any environmental savings can be realised. In this study an environmental and economic assessment from cradle-to-gate has been conducted. The study highlights the need for a highly efficient bioprocess in terms of product titre (more than 100 g/L and productivity more than 2 g/(L·h)) in order to be sustainable. The importance of the raw materials and energy production for operating the process to minimize emissions of greenhouse gases is also shown.