Ethanol is a clean-burning, high-octane fuel produced from renewable sources like corn and sugarcane. It can be blended with gasoline up to 10% (E10) or 85% (E85) for flexible fuel vehicles. Ethanol is made through fermentation and produces a positive energy balance. While ethanol benefits energy independence and the economy by creating jobs, there are also problems like higher food prices and environmental impacts that depend on production methods.