Fifty years after a role of vanadium in biological fixation was proposed, it was shown that in addition to their well-characterized molybdendum nitrogenases, Azotobacter chroococcum and Azotobacter vinelandii both have a genetically distinct nitrogenase system in which the conventional molybdoprotein is replaced by a vanadoprotein. Both Mo-nitrogenases and V-nitrogenases have similar requirements for activity: MgATP, a low potential reductant and the absence of oxygen. The genes encoding the V-nitrogenase are expressed only under conditions of Mo-deficiency. V-Nitrogenase of A.chroococcum is made up of a tetrameric VFe protein (Mr 210,000) with an alpha 2 beta 2 structure containing two V atoms, 23 Fe atoms and 20 acid-labile sulphide atoms per tetramer, and a dimeric Fe protein (Mr 64,000) with a gamma 2 structure containing four Fe atoms and four acid-labile sulphide atoms per dimer. Vanadium K-edge X-ray absorption spectroscopy indicates that V in the VFe protein, like Mo in MoFe protein, has S, Fe and possibly O as nearest neighbours. A vanadium- and iron-containing cofactor (FeVaco) can be extracted from the VFe protein and will restore C2H2 reductase, but no nitrogenase activity, to the inactive MoFe protein accumulated by mutants unable to synthesize the molybdenum- and iron-containing co-factor of Mo-nitrogenase. The products of C2H2 reduction by the hybrid protein (C2H6 as well as C2H4) are a characteristic of the VFe protein and provide evidence that FeVaco is, or forms part of the active site of V-nitrogenase.