Ethanol produced from biomass such as sugar containing materials, like sugar cane, sugar beet, sweet sorghum, etc; starch containing materials such as corn, cassava, algae etc; and cellulosic materials such as biogases, wood waste, agricultural and forestry residues etc..

As far as the Bio-fuel programmes is concerned, ethanol is the distillate of the substrate obtained by alcoholic fermentation of sugars, hydrolyzed starches and hydrolyzed cellulosic materials. Government recognizes the importance of bio-fuels as extremely critical to sustainable energy security and environment protection with creation of employment and further economic growth.​