Ethanol is also produced by the catalytic hydration of ethylene. Crude oil is catalytically 'cracked' to ethylene and the ethylene is chemically combined with water at high temperatures with an acid catalyst. This process is actually cheaper than fermentation, | Ethanol is also produced by the catalytic hydration of ethylene. Crude oil is catalytically 'cracked' to ethylene and the ethylene is chemically combined with water at high temperatures with an acid catalyst. This process is actually cheaper than fermentation, |