Ethanol, an alcohol fuel, is an important fuel for the operation of internal combustion engines that are used in cars, trucks, and other kinds of machinery. 1  Ethanol was first isolated from wine in approximately 1100 and was found to burn shortly thereafter. Ethanol production rises to the 4-billion-US-gallon (15,000,000 m 3) level. 2  Between 1997 and 2002, three million U.S. cars and light trucks are produced which could run on E85, a blend of 85% ethanol with 15% gasoline.