An iron-dependent alcohol dehydrogenase required for optimal 1,2-propanediol (1,2-PD) degradation. NAD(+) and NADH are regenerated internally within the bacterial microcompartment (BMC) dedicated to 1,2-PD degradation by the PduP and PduQ enzymes, which reduce NAD(+) and oxidize NADH respectively, although there must also be cofactor transport across the BMC. Expression of a cosmid containing the full 21-gene pdu operon in E.coli allows E.coli to grow on 1,2-propanediol (1,2-PD) with the appearance of bacterial microcompartments (BMC) in its cytoplasm. The 1,2-PD-specific bacterial microcompartment (BMC) concentrates low levels of 1,2-PD catabolic enzymes, concentrates volatile reaction intermediates thus enhancing pathway flux and keeps the level of toxic, mutagenic propionaldehyde low. 1-propanol + NAD(+) = H(+) + NADH + propanal Polyol metabolism; 1,2-propanediol degradation. Interacts with PduP, probably via the N-terminus of PduQ. Probably located inside the BMC shell. Belongs to the iron-containing alcohol dehydrogenase family.