Due to the high energy-importing dependence (98%) and tremendous greenhouse gases (GHGs) emission (over 13 metric tons/capita-year), the diversification of kinds and sources of primary fuel like petroleum is making vital energy and environmental issues in Taiwan. In this regard, bioethanol fuel from energy crops has thus become attractive in this subtropical/tropical nation due to the rampant increase in oil price and governmental policies on promoting bioethanol as a potential substitute for gasoline fuel in recent years. The objective of this paper is to present an analysis of bioethanol fuel produced from sugar crops as one of the gasoline additives in the transportation sector of Taiwan. The analytical description in the manuscript is thus summarized on current energy supply and its future supply goal, and gasoline supply and consumption during the years of 1990–2005. It is emphasized that bioethanol was ever produced commercially from sugar manufacturing by-product (i.e., molasses) for more than 50 years in Taiwan. Concerning the promotion of bioethanol production, the description centered on new/revised promotion regulations/policies for the measures of agricultural sustainability, environmental protection, energy management,and financial incentives. Finally, we analyze the safety, health, and environmental risk of using bioethanol fuel, and also address its preliminary benefits on an industrial scale of 500,000 kiloliters/year from a cane field of 100,000 ha, showing a total energy output of 3.0107 GJ/year and a CO2 mitigation of 7.5105 metric tons/year.