Due to the global energy crisis and continuous increase in petroleum prices, scientists have been in search of new fuels to replace conventional fuels that are used in IC engines. Among all the fuels, alcohols, which can be produced from sugarcane waste and many other agricultural products, are considered the most promising fuels for the future. There are two types of alcohols: ethanol (C2H5OH) and methanol (CH3OH). Many other agri­cultural products (renewable sources) also have a vast potential for alco­hol production, and it is necessary to tap this source to the maximum level in national interest. The use of alcohol as a motor fuel is itself not a new idea. Nicolas Otto, the pioneering German engine designer, suggested it as early as 1895. But, as long as crude oil was plentiful and inexpensive, petroleum gasoline was the most economical fuel for the IC engine.

Due to the global energy crisis, many countries that used to export molasses to be used as cattle feed are now setting up distilleries to man­ufacture ethanol.