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It's usually fine to make your own alcohol, especially if you're not drinking it. The big thing to consider is what it'll do to your car. There are several modern cars that will run on E85 (85% ethanol, 15% gasoline). Make sure yours is one of them. Also, you'll have to calculate the cost of producing ethanol (include paying yourself for your time) and weigh that against the cost of gas. Be sure to factor in the gasoline equivalency, one gallon of E85 won't take you the same number of miles as a gallon of gasoline.
BTW, it's tricky to make 100% ethanol.
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