Gas stations in Taiwan will fully supply the E3-grade gasohol to vehicles possibly in 2014 or later, and the annual demand of anhydrous fuel ethanol will be estimated about 300 million liters that is already exceeding the minimal economic production capacity of 100 million liters per year. Bioethanol plants may be available in the future as long as the reasonable tax exemption is solved. This article is intended to illustrate the various aspects related to the bioethanol industry, including world trend & government policy, tax exemption & tariff protection, energy crop promotion, future raw materials, production technology, and investment considerations.