Ethanol (C2H5OH) production doesn't need hydrogen. I think you may be confusing this with the Ammonia(NH3) based fuels?Yes anything that reduces CO2 is to be encouraged I guess. I think you have to be concerned about where they get their Hydrogen form a very inefficient process. But hey you have got to try things to learn from them
Ethanol is an alcohol and generally produced using crops like corn, or in some small scale tests from algae or bacteria.