Fuel Grade Alcohol There are many applications for alcohol, but none quite as unique as its use in motor fuel. At MGP, we produce fuel grade alcohol as a co-product of our distillery process. The EPA many years back undertook a program to eliminate the lead content in gasoline. Accordingly, refiners needed a good, environmentally clean octane additive. Fuel grade alcohol certainly fulfilled this need. Today, the fuel ethanol industry has grown and matured to include a Renewable Fuels Standard that mandates the use of clean burning ethanol in the gasoline industry. . In 2011, 12.6 billion gallons of corn based ethanol will be blended into gasoline and growing to 15 billion gallons by 2015.