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Ethanol fuel is ethanol (ethyl alcohol), the same type of alcohol found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. World ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres. From 2007 to 2008, the share of ethanol in global gasoline type fuel use increased from 3.7% to 5.4%. In 2010 worldwide ethanol fuel production reached 22.95 billion U.S. liquid gallons(bg) (86.9 billion liters), with the United States as the top producer with 13.2 bg, accounting for 57.5 percent of global production.

Ethanol fuel is widely used in Brazil and in the United States, and together both countries were responsible for 88 percent of the world's ethanol fuel production in 2010. Most cars on the road today in the U.S. can run on blends of up to 10% ethanol, and the use of 10% ethanol gasoline is mandated in some U.S. states and cities. Since 1976 the Brazilian government has made it mandatory to blend ethanol with gasoline, and since 2007 the legal blend is around 25% ethanol and 75% gasoline (E25). In addition, by December 2010 Brazil had a fleet of 12 million flex-fuel automobiles and light trucks and over 500 thousand flex-fuel motorcycles regularly using neat ethanol fuel (known as E100).

Bioethanol is a form of renewable energy that can be produced from agricultural feedstocks. It can be made from very common crops such as sugar cane, potato, manioc and corn. However, there has been considerable debate about how useful bioethanol will be in replacing gasoline. Concerns about its production and use relate to increased food prices due to the large amount of arable land required for crops, as well as the energy and pollution balance of the whole cycle of ethanol production, especially from corn. Recent developments with cellulosic ethanol production and commercialization may allay some of these concerns.

Cellulosic ethanol offers promise because cellulose fibers, a major and universal component in plant cells walls, can be used to produce ethanol. According to the International Energy Agency, cellulosic ethanol could allow ethanol fuels to play a much bigger role in the future than previously thought.