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Butanol may be used as a fuel in an internal combustion engine. It is more similar to gasoline than it is to ethanol. A C4-hydrocarbon, butanol is a drop-in fuel and thus works in vehicles designed for use with gasoline without modification. Both n-butanol and isobutanol have been studied as possible fuels. Both can be produced from biomass as well as from fossil fuels. The chemical properties depend on the isomer , not on the production method.

Although intriguing in many ways, butanol fuel is rarely economically competitive.

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