In present context of cleaner environment and conservation of petroleum fuels, the biofuels are being looked into with renewed interest. India has high potential of producing liquid biofuels like ethanol and bio-diesel. Today fuel-ethanol accounts for roughly two third of the world ethyl alcohol production. India is the fourth largest producer of ethanol in the world, yet it has not been able to utilize even one percent of this production as fuel for vehicles. If the ethanol can be produced efficiently from vegetation then the production of green house gases (GHG) emitted from vehicles can be reduced effectively. The vegetation uses CO₂ gas and produces O₂ just the reverse of the combustion process. Ethanol blended fuel helps to minimize HC, NOx, CO, non -methane organic gas (NMOG), soot particles and toxics.

KEYWORDS: Biomass, Green house gases, biofuels