History of ethanol began in the 1800s

Ethanol is not a new concept. In fact, the first cars were designed to run on it. Through it’s long and tumultuous presence in American history, ethanol is starting to reappear in the mainstream as the alternate transportation fuel of choice.

In the mid-1800s, European engineers and mechanics began using the alcohol-based fuel to operate motor engines. However, in the United States, ethanol was primarily used as lighter fluid. During the Civil War, the Union Congress established a $2-per-gallon excise tax on ethanol to pay for its war efforts. The price of ethanol could not compete with other types of fuel and it disappeared from markets.