They are probably talking about chaining four DC electric engines (16nm) >> worm gear (16:1) >> Grinder to skip wind/steam power sources. I can't imagine why this would be preferable for the time it would take to complete a single operation (~32 seconds) with a perishable gearbox, all in exchange for the upfront cost of a little more HSLA steel.
In either case, making the ethanol engine is not strictly necessary - it has its applications, but it's not gating anything either. AC Electric engines, while more expensive, offer renewable power with a higher output. Consequently, by the time I'm ever ready to start burning ethanol, the performance engine is a more attractive option.
tl;dr They aren't skipping ethanol tech, per se, but there are portions of the tree that seem rather redundant.