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Background  Omega hydroxy fatty acids (ω-OHFAs) are multifunctional compounds that act as the basis for the production of various industrial products with broad commercial and pharmaceutical implications. However, the terminal oxygenation of saturated or unsaturated fatty acids for the synthesis of ω-OHFAs is intricate to accomplish through chemocatalysis, due to the selectivity and controlled reactivity in C-H oxygenation reactions. Cytochrome P450, the ubiquitous enzyme is capable of catalyzing the selective terminal omega hydroxylation naturally in biological kingdom.    Results  To gain a deep insight on the biochemical role of fungal P450s towards the production of omega hydroxy fatty acids, two cytochrome P450 monooxygenases from  Fusarium oxysporum  ( FoCYP ),  FoCYP539A7  and  FoCYP655C2;  were identified, cloned, and heterologously expressed in  Saccharomyces cerevisiae . For the efficient production of ω-OHFAs, the  S. cerevisiae  was engineered to disrupt the acyl-CoA oxidase enzyme and the β-oxidation pathway inactivated (ΔPox1)  S. cerevisiae  mutant was generated. To elucidate the significance of the interaction of redox mechanism,  FoCYP s were reconstituted with the heterologous and homologous reductase systems -  S. cerevisiae  CPR ( ScCPR ) and  F. oxysporum  CPR ( FoCPR ). To further improve the yield, the effect of pH was analyzed and the homologous  FoCYP-FoCPR  system efficiently hydroxylated caprylic acid, capric acid and lauric acid into their respective ω-hydroxy fatty acids with 56%, 79% and 67% conversion. Furthermore, based on computational simulations, we identified the key residues (Asn106 of  FoCYP539A7  and Arg235 of  FoCYP655C2 ) responsible for the recognition of fatty acids and demonstrated the structural insights of the active site of  FoCYP s.    Conclusion  Fungal CYP monooxygenases,  FoCYP539A7  and  FoCYP655C2  with its homologous redox partner,  FoCPR  constitutes a promising catalyst due to its high regio- and stereo-selectivity in the hydroxylation of fatty acids and in the substantial production of industrially valuable ω-hydroxy fatty acids.    Electronic supplementary material  The online version of this article (doi:10.1186/s12934-015-0228-2) contains supplementary material, which is available to authorized users.

Fungal cytochrome P450 monooxygenases of Fusarium oxysporum for the synthesis of ω-hydroxy fatty acids in engineered Saccharomyces cerevisiae