The textile industry faces significant environmental challenges due to its reliance on non-renewable resources and the substantial waste it generates. Traditional methods of acetic acid production, such as methanol carbonylation, are energy-intensive and environmentally harmful. This research explores an innovative approach to produce acetic acid sustainably using methanol and CO₂, by-products of the lignin Kraft process, through microbial fermentation with Acetobacterium woodii. The study successfully optimized acetate production in a lab-scale setting, achieving a maximum titer of 30.21 g/L using continuous fed-batch modes, although substrate accumulation presented challenges. A biorefinery model producing 170 tons of acetic acid annually was designed, demonstrating favorable gross margins and a potential 9.28% internal rate of return, with significant CO₂ savings estimated at 110,074 tonnes per year. This novel method offers a sustainable alternative for acetic acid production that integrates waste reduction and carbon capture, contributing to a circular bioeconomy. The findings suggest that further refinements in feeding strategies and medium optimization can enhance the scalability and industrial application of microbial acetate production.