Ethanol is a renewable fuel, now primarily made from corn kernals, that is playing an increasingly important role in our economy. It is currently being used as an additive or volume extenerin gasoline, but can be burnt in flexible fuel vehicles at up to 85% concentrations. In the next 20 or thirty years it could become the most important alternate liquid fuel. At 2005 prices it is competitive with gasoline. The technology is progressing rapidly and in 1-2 years the first plants producing ethanol from corn and sugar cane residues shoud be in opreation, greatly reducing the land requirements to produce the feedstock.