There are two types of ethanol, denatured alcohol and absolute
ethanol. Ethanol is produced both
as a petrochemical, through the hydration of ethylene, and
biologically, by fermenting sugars with yeast.
The basic steps for large scale production of ethanol are: microbial
(yeast) fermentation of sugars, distillation, dehydration (required
unless distillation is done well and/or repeatedly), and denaturing
(optional).
Prior to fermentation, some crops require saccharification or hydrolysis into carbohydrates. Saccharification
of cellulose is called cellulolysis (see cellulosic ethanol). Other
pre-production steps can be necessary for certain crops like corn
which requires refinment into starch and liquification.