Ethanol is a type of spirit and also a bio fuel. It is one of the oldest ingredients obtained from chemical process known to mankind. People have always had wine and spirits for producing alcohol. However, it was never known as ethanol. Ethanol is becoming very popular in the modern world because it is being considered as an alternative fuel that can save the environment.
Biodiesel is non-petroleum diesel fuel. It is produced by the process of transesterfication. This is the exchange of alkoxy group of an ester compound with an alcohol group. It comprises of short chains of alkyl ester. Biodiesel is fast emerging as an alternative to fuel that is normally used in diesel vehicles.