The Economic Feasibility of Ethanol Production from Sugar Crops Ethanol is a high-octane fuel used primarily as a gasoline additive and extender. Since the late 1970s, methyl tertiary butyl ether (MTBE) has replaced lead as the primary gasoline additive in the United States. Over the past few years, however, several states have banned the use of MTBE as a gasoline additive because of its environmental problems resulting in groundwater contamination. The reduction in use of MTBE and recent surging prices for petroleum-based fuels are dramatically increasing the demand for ethanol and the interest in ethanol production in the United States. Louisiana Agriculture Magazine - Winter 2007 Biomass Energy Resources in Louisiana Research Information Sheet 102 Biodiesel Fact Sheet W. A. Callegari Environmental Center