A process for producing alcohol from syngas integrates the alcohol recovery with the removal of CO2 from syngas. A syngas feed containing CO, H2, and CO2 contacts an aqueous alcohol stream to remove CO2 from the syngas that then passes to bioreactor containing microorganisms for conversion to alcohol and other liquid products. Flashing of the scrubbing liquid releases the CO2 and simultaneously concentrates alcohol in the overhead flash vapor. Condensation of the flash vapor provides an enriched alcohol stream for enhanced recovery of the ethanol product in a product separation zone. The remainder of the scrubbing liquid along with make-up alcohol and water from the process gets returned for continued contact with the syngas feed.