Biofuels can be used as an alternative energy source. These are cost effective as well as environment friendly. Biofuels are generally derived from the ethanol. In future the energy sources to be derived from ethanol will increase. The demand of diesel and gas will also reduce in future. Globally, Brazil is the number producer of biofuels followed by United States.

Recently ethanol is used as fuel world wide. Regarding to its significance in its use and applications, it has many advantages as well as disadvantages.