Ethanol distilleries use grain in their production by basically making grain alcohol. Ethanol is the type of alcohol you could buy at a liquor store, as everclear or a similar grain alcohol brand. This is basically legal moonshine. Fuel ethanol is not fit to consume. Most gasoline nowadays is 10% ethanol. The grain is ground into a flour, and enzymes convert the starch into dextrose. This dextrose has yeast added to it and the yeast converts the sugars into ethanol, but in the process gives off carbon dioxide. The CO2 is scrubbed from the exhaust air and sequestered. The resulting product is grain ethanol.
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