The technical objectives of this program were to demonstrate, with Compact Membrane Systems, Inc. (CMS) membrane technology, a water-ethanol system that would have significantly improved water transmission rate and would be economically attractive for a low cost azeotrope-breaking process. The overall objective was to indicate that a CMS membrane in line with existing distillation equipment can dramatically reduce the overall cost of dewatering ethanol for fuel-grade ethanol (FGE). The objectives of this program fell into three areas. The first objective was to demonstrate the feasibility that the CMS membranes have a unique capability for rapid transport of water or water vapor and significant water vapor-ethanol separation. The second objective was that the purity of ethanol and the inherent process is consistent with the needs and uses in the fuel grade ethanol industry. Thirdly, that this can be done in a manner that is significantly superior to existing processes.