Ethanol is a chemical, a specific type of alcohol. When sugar ferments, as when grapes are made into wine, ethanol is created.
Isopropyl alcohol, commonly known as "rubbing alcohol," is poisonous, but ethanol can be safely consumed by most people in small quantities. It's clear and colorless, and highly flammable. In addition to being a component of all alcoholic beverages, ethanol is also an alternative fuel source. The word ethanol is a contraction of ethane, a chemical compound, and alcohol.