Petrol and Diesel are natural resuorces and the supply will diminish with use. They are not renewable sources of energy. Most of the urppean Countries have been promoting renewable sources of energy in order to conserve the natural resources.

Ethanol is mainly produced from sugarcane molasses & juice. Sugarecane cultivation is an efficent menthod of converting solar energy into stored energy. Thus use of Ethanol, as oxygenating agent or fuel-extander would conserve fossil fuels and reduce dependence on fossil fuels.

Ethanol when mixed with petrol and diesel in place of tetraethyle lead or MTBE prevents the dangerous emmissions containing lead or MTBE from vehicles. It will not require any catalytic converter for vehicle. This is one of the main priority areas.

Use of Ethanol in petrol reduces emission of carbon monoxide. This will reduce pollution. Emission of carbon monoxide is the major cause or environmental pollution in India.

Most of the countries are importing petrol and diesel (Petroleum Products) from the gulf. The price of the products is controlled by the OPEC countries. thus the petrol and diesel proces are totally dependent on the price determined by these countries. By adding ethanol to petrol and diesel such dependence is pratially reduced.

The use of ethanol in petrol and diesel also reduces imports and thus results in foreign exchange savings.

The use of Ethanol will also help to reduce the cost of prtroleum products to the end consumers.

This is the new bye product emerging for the sugar industry of the country. This will improve the profititability of this industry also.

Use of Ethanol helps in maintaining the carbon cycle in nature. CO2 in the atmosphere is converted by agriculture crops like sugarcane into carboneous material like sugar and streach using solar energy. This sugar or starch can be converted into Ethanol This ethanol is in vehicles to produced energy along with petrol. The combustion in internal conbustion engines converts Ethanol in to CO2. The CO2 can again be converted into sugar or starch. Thus, the carbon cycle of the nature countries. nThis carbon cycle uses solar energy, which otherwise would have been wasted. Use of Fossil fuels alone to generate energy, increases content of CO2 i the atmosphere, disturbing the natural balance. Sustaining the carbon cycle reduces the green house effect.