Ethyl alcohol is derived from two main processes, hydration of ethylene and fermentation of sugars. Hydration of ethylene is the primary method for the industrial production of ethyl alcohol, while fermentation is the primary method for production of beverage alcohol.
Industrial Production: Traditionally, industrial ethanol is manufactured via the acid catalyzed hydration of ethylene. Current technology uses porous catalyst carriers (zeolites, silica gels) impregnated with phosphoric acid.
The reaction with phosphoric acid is as follows:
Ethylene + Phosphoric acid catalyst --> Ethanol + Phosphoric acid catalyst
Ethylene is a petroleum product, requiring high temperature processing.
Fermentation and Beverage Production All beverage alcohol and much of that used in industry is formed through fermentation of a variety of starches, carbohydrates, and sugars. (In earlier years, until about 1947, the largest proportion of the production of industrial alcohol was also from fermentation). Fermentation can be defined as an enzyme (yeast) catalyzed chemical reaction at about room temperature.
C6H1206 --> 2CH3CH2OH + 2CO2
The initial fermentation mixture contains approximately 3% (beer) to 15% ethanol (wine and sherry). This is a "natural" limit of sacchromyces cerivisae (brewers yeast, vintners yeast) because higher concentrations of ethanol kills the yeast.
Distillation is required to generate higher alcohol concentrations. However, this is not the high temperature distillation required in petroleum refining.
My bottom line --- the ethylene route to ethanol starts from a petroleum product, which is thermally converted to ethylene (energy into the process), which is in turn converted to ethanol, which has to be distilled (more energy into the process).
This is where we get the rubric that it takes more energy make ethanol then you can get out of the ethanol as a fuel.
The fermentation route to ethanol is much slower, and still requires a distillation step (energy into the process) - but much less energy into the process then the ethylene route.
But, this is where we get the rubric that it takes time and money and vast amounts of real estate (for growing the grains and then for the vats) to make ethanol.Take your choice.