Ethanol has low toxicity, is miscible with water, easily biodegraded in the environment, and produces much less air-borne pollutants in internal combustion engines than petroleum fuels. Since biomass is derived from carbon within the biosphere and after combustion is returned to the biosphere, the natural carbon balance is not changed. convincing evidence can be shown on the pollution prevention characteristics of ethanol-gasoline blends, especially for E85 formulations (85% ethanol/15% gas). Additionally, they state that many car makers are producing more vehicles with tolerances to burn high %E fuels more efficiently. Thus, the risk posed by ethanol to the environment is significantly lower than that of fuels produced from petroleum and the demand for ethanol will increase with time as these automobile improvements take place.