Bioethanol fuel is mainly produced by the sugar fermentation process, although it can also be manufactured by the chemical process of reacting ethylene with steam. The main sources of sugar required to produce ethanol come from fuel or energy crops. ... Ethanol burns to produce carbon dioxide and water. In essence, Ethanol is grain alcohol. Chemically speaking, Bioethanol and Ethanol are the exact same compound as the chemical formula is identical. ... Bioethanol is considered to be made through a more eco-friendly process using the fermentation of contemporary materials such as sugar beets, corn, straw, and wood. Bioethanol is ethyl alcohol used as a fuel, particularly as an additive for gasoline in motor fuel. It is a form of renewable energy produced most commonly from biomass, such as corn, sugar cane, hemp, potato, cassava, etc.