Described herein is a method to increase ethanol yield during alcoholic fermentation by expression a truncated versions of the Saccharomyces cerevisiae PHO8 gene coding for vacuolar or cytosolic form of alkaline phosphatase, which expression lowers biomass accumulation while diverting greater carbon to ethanol production. Also described are as nucleic acid sequences and vectors for expression of the PHO8 gene and strains carrying the same. Strains containing intact PHO8 gene encoding vacuolar form of alkaline phosphatase, had slightly lower intracellular ATP levels with insignificant changes in biomass accumulation and up to 13% increase in ethanol production.