Abstract: A method and apparatus for removing water from a liquid mixture of water and ethanol contacts it with liquid carbon dioxide so that the ethanol is preferentially transferred into solution, dries the solution using an adsorbent, and then recovers dry ethanol by distilling off the carbon dioxide. This process is particularly energy efficient especially when it includes a fermentation process to generate the ethanol and uses the carbon dioxide generated during the fermentation as the source of liquid carbon dioxide. In this case the method and apparatus provide an additional product of dry carbon dioxide.