Biologically produced alcohols, most commonly ethanol, and less commonly propanol and butanol, are produced by the action of microorganisms and enzymes through the fermentation of sugars or starches (easiest), or cellulose (which is more difficult). Biobutanol (also called biogasoline) is often claimed to provide a direct replacement for gasoline, because it can be used directly in a gasoline engine (in a similar way to biodiesel in diesel engines).
Ethanol fuel is the most common biofuel worldwide, particularly in Brazil. Alcohol fuels are produced by fermentation of sugars derived from wheat, corn, sugar beets, sugar cane, molasses and any sugar or starch that alcoholic beverages can be made from (like potato and fruit waste, etc.). The ethanol production methods used are enzyme digestion (to release sugars from stored starches), fermentation of the sugars, distillation and drying. The distillation process requires significant energy input for heat (often unsustainable natural gas fossil fuel, but cellulosic biomass such as bagasse, the waste left after sugar cane is pressed to extract its juice, can also be used more sustainably).
Ethanol can be used in petrol engines as a replacement for gasoline; it can be mixed with gasoline to any percentage. Most existing car petrol engines can run on blends of up to 15% bioethanol with petroleum/gasoline. Ethanol has a smaller energy density than does gasoline; this fact means that it takes more fuel (volume and mass) to produce the same amount of work. An advantage of ethanol (CH3CH2OH) is that it has a higher octane rating than ethanol-free gasoline available at roadside gas stations which allows an increase of an engine's compression ratio for increased thermal efficiency. In high altitude (thin air) locations, some states mandate a mix of gasoline and ethanol as a winter oxidizer to reduce atmospheric pollution emissions.
Ethanol is also used to fuel bioethanol fireplaces. As they do not require a chimney and are "flueless", bio ethanol fires are extremely useful for new build homes and apartments without a flue. The downside to these fireplaces, is that the heat output is slightly less than electric and gas fires.
In the current corn-to-ethanol production model in the United States, considering the total energy consumed by farm equipment, cultivation, planting, fertilizers, pesticides, herbicides, and fungicides made from petroleum, irrigation systems, harvesting, transport of feedstock to processing plants, fermentation, distillation, drying, transport to fuel terminals and retail pumps, and lower ethanol fuel energy content, the net energy content value added and delivered to consumers is very small. And, the net benefit (all things considered) does little to reduce imported oil and fossil fuels required to produce the ethanol.
Although corn-to-ethanol and other food stocks have implications both in terms of world food prices and limited, yet positive, energy yield (in terms of energy delivered to customer/fossil fuels used), the technology has led to the development of cellulosic ethanol. According to a joint research agenda conducted through the U.S. Department of Energy, the fossil energy ratios (FER) for cellulosic ethanol, corn ethanol, and gasoline are 10.3, 1.36, and 0.81, respectively.
Even dry ethanol has roughly one-third lower energy content per unit of volume compared to gasoline, so larger / heavier fuel tanks are required to travel the same distance, or more fuel stops are required. With large current unsustainable, non-scalable subsidies, ethanol fuel still costs much more per distance traveled than current high gasoline prices in the United States.
Methanol is currently produced from natural gas, a non-renewable fossil fuel. It can also be produced from biomass as biomethanol. The methanol economy is an alternative to the hydrogen economy, compared to today's hydrogen production from natural gas.