The ethanol market in the United States is undergoing rapid growth, affecting many sectors of the national economy. Consensus among all stakeholders is that priority must be given to the development of cellulosic ethanol and other technologies capable of delivering a safe and effective biofuel, to address the growing US energy security dilemma. The development of a new biofuels market that will combine ethanol production from traditional and innovative crops with new alternative fuel technology presents exciting opportunities and challenges. This paper examines the current developments in the ethanol market - both economic and political - and attempts to show where the synergies lie between US producers' best strategies and achieving energy security.