Industrialization of modern societies has increased global fossil energy demand and consumption; and consequently widespread environmental pollution from high carbon emissions from burning of fossil fuel. Fossil energy is non-renewable and future scarcity and high price have been predicted. These factors have necessitated intense research and development of alternative sources of fuel. Moreover volatility of prices of fossil fuel is increasing, contributing to concerns about reliance on fossil fuel. Currently liquid fuel still remains a major transportation fuel in vehicles powered by internal combustion engines. Nonetheless, the international atomic energy agency estimated that as much as 13.3% of global energy consumption is renewable energy of which 10% is bioenergy, 2.3% is hydro-energy and about 1% is from sources such as solar, wind, heat and geothermal. Well established processes for fermentation of sugars to ethanol and esterification of fatty acids in lipids and oils, with alcohols such as methanol, ethanol and propanol laid key foundation for production of first generation liquid transportation biofuel. Ethyl alcohol (ethanol, grain alcohol, molasses alcohol etc ) has several industrial uses and is an attractive transportation fuel. This chapter presents types of biofuel, feedstocks for production of biofuel, thermochemical biofuel processes, industrial alcohol production, properties of ethanol and uses of ethanol, manufacture of ethanol, denatured alcohol, and developments in alcohol production.