Of course that is the case. But they are both products
that take carbon dioxide out of the air-- ethanol and
vegetable oil. That makes it Carbon neutral. Perhaps
this article will state it better
http://spectrum.ieee.org/jan08/5866
Here's a short excerpt:
"The first step would be to capture the carbon dioxide
from sources where it is concentrated, such as power
plants and industrial smokestacks, says James E.
Miller, a chemical engineer who is one of the lead
researchers on Sandias Sunshine to Petrol project. But
the ultimate goal would be to snatch it out of the air
to yield carbon-neutral liquid fuel, he says."
This is a process that just uses sunshine which we have
a lot in Hawaii to produce ethanol from the CO2 in the
air. It's a little different from the other
carbon-neutral processes of sugar, cellulosic ethanol
or algae vegetable oil.