The main objective of this study was to evaluate the possibility of ethanol production through the immobilization of S. cerevisiae with L-lysine coated magnetite nanoparticles (MNPs), using sugar beet molasses as the substrate for the fermentation process. The ethanol concentration obtained in the fermentation process was found to be statistically similar for both the immobilized and the free cells. Additionally, magnetically immobilized yeast cells were successfully separated from the fermentation broth using an integrated magnetic separation process. From this study, the immobilization of S. cerevisiae cells with L-lysine coated MNPs was found to be a promising method for bioethanol production.