Alcohol-based biofuels are produced in much the same way as liquor, though, of course with different emphasis. In fact, ethyl alcohol, or ethanol, which is the most commonly used bio-alcohol, is the same type of alcohol that is found in whiskey, vodka, gin, etc. All of these are based on the fermentation of starches and sugars. The ingredients are gathered, ground up, mixed with water and left to ferment with the help of yeast or other organisms for some period of time (three years for Scotch whiskey!) before it is finally distilled into the final product.