About 75% of bioethanol produced in the world being used to power automobiles, though it may be used for gasoline additives and other industries such as paints and cosmetics. Ethanol fuel blends are widely sold in the United States, Brazil, Europe and China. The most common blend is 10% ethanol and 90% petrol (E10). Vehicle engines require no modifications to run on E10 and vehicle warranties are unaffected also. However, only flexible fuel vehicles can run on up to 85% ethanol and 15% petrol blends (E85). Since 1976 the Brazilian government has made it mandatory to blend ethanol with gasoline with 5% ethanol and 95% petrol, and in 2007 the legal blend is around 25% ethanol and 75% gasoline (E25). Today, bioethanol contribute around 3% of total road transport fuel globally (on an energy basis) and considerably higher shares are achieved in certain countries [3]. The usage of bioethanol as transport fuel will be even more as the recent European Commission energy roadmap has set a target to increase the use of biofuels for transport from 5.75% from 2010 to 10% by 2020 under the Directive 2003/30/EC.

Bioethanol is also used as primarily gasoline additive and extender due to its high-octane rating. Bioethanol replacing lead as an oxygenate additive for traditional petrols in the form of Ethyl tertiary butyl ether (ETBE). The ethanol is mixed with isobutene (a non-renewable petroleum derivative) to form ETBE. At a 10% mixture, ethanol reduces the likelihood of engine knock, by raising the octane rating.

Beside the usage of bioethanol in fuel industry, bioethanol also can serve a wide range of uses in the pharmaceuticals, cosmetics, beverages and medical sectors as well as for industrial uses. The market potential for bioethanol is therefore not just limited to transport fuel or energy production but has potential to supply the existing chemicals industry. These include for use in acetaldehyde (raw material for other chemicals e. g. binding agent for paints and dyes), acetic acid (raw material for plastics, bleaching agent, preservation), ethylacetate (paints, dyes, plastics, and rubber), detergents, thermol (cold medium for refrigeration units and heat pumps), solvent for spirits industry, cosmetics, print colours and varnish, isopropyl alcohol (IPA), ethyl acetate (EAC), WABCO-antifreeze (disinfectant, cleaning agent for electronic devices, solvents) and vinasse, potassium sulphate (feeding stuffs, fertilizer).