Ethanol is a type of alcohol (called ethyl alcohol or grain alcohol) that is used as an alternative fuel in automobiles. It is produced using grain and corn. Ethanol is most often blended with gasoline for use in flexible-fuel vehicles. The fuel E85 is a blend of 85 percent ethanol and 15 percent gasoline. Ethanol has also been found to reduce greenhouse gases, according to the U.S. Environmental Protection Agency.