Alcohol fuels are made from renewable resources like locally grown crops and even waste products such as waste paper or grass and tree trimmings. Methanol and ethanol are two types of alcohol fuels used in cars. Ethanol can be produced from a variety of renewable resources, most commonly corn and sugarcane. Methanol can be made from renewable resources also, but today, methanol is primarily made from natural gas. Alcohol fuels burn cleaner than regular gasoline and produce less carbon monoxide. Alcohol fuels have high octane.