Explanation:

Ethanol is derived from corn and sugarcane using the fermentation process.

• A litre of ethanol contains approximately two thirds of the energy provided by a litre of petrol.
• When mixed with petrol, it improves the combustion performance and lowers the emissions of carbon monoxide and sulphur oxide.
• Biodiesel is derived from vegetable oils like soybean oil or palm oil, vegetable waste oils, and animal fats by a biochemical process called “Transesterification.” 
• It produces very less or no amount of harmful gases as compared to diesel.
• It can be used as an alternative for the conventional diesel fuel.

Hence both statements are correct.