Complex sentence: Unlike bacteria which use bacterial MDH, methylotrophic yeasts perform methanol oxidation in their peroxisomes with a non-specific alcohol oxidase which produces formaldehyde as well as hydrogen peroxide.
Split into simpler sentences: Unlike bacteria which use bacterial MDH, methylotrophic yeasts oxidize methanol in their peroxisomes with a non-specific alcohol oxidase. This produces formaldehyde as well as hydrogen peroxide.