Burning the ethanol would release the CO2 again yes, but the idea there is it would be close to carbon neutral. Whatever CO2 you pull out of the atmosphere gets put back, but in the interim millions of cars got to where they wanted to go, or your house got heated, or whatever.
Pulling the CO2 out and putting it away forever would help the global warming side of things yes if done on a large enough scale.
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Uncertainty is an uncomfortable position.
But certainty is an absurd one.
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