Bioethanol is increasingly being used as a fuel in certain areas. One of the most well-known areas where bioethanol is used is as an alternative fuel for cars. In some parts of the world, bioethanol has been used as the main fuel for petrol engines since the 1970s, but in the Netherlands, cars adapted to run on bioethanol or petrol blends with a high bioethanol content are not widely found. In the US and the UK, blends such as E10 with a bioethanol content of 10% mixed with unleaded petrol are increasingly used and can be run by normal petrol engines without any problems.

In the home, bioethanol replaces other types of fuel for use in open fires. Bioethanol fires look attractive with their real orange flames, but produce no smoke or ash. This makes them more convenient and easier to install than other types of fire, and the fact that bioethanol is carbon neutral, has low toxicity, and is biodegradable makes it an attractive choice from an environmental perspective, too. Bioethanol fires can also be used outdoors, making them a good alternative to other forms of outdoor lighting and heating.