NOVELTY - Producing ethanol, comprises: hydrogenating acetic acid and/or its ester in a reactor (103) in presence of a catalyst to form crude ethanol product (109); separating a portion of the product in a first distillation column to obtain a first distillate (119) and a first residue; separating a portion of the first residue in a second distillation column to obtain a second residue having acetic acid and water, and a second distillate having e.g. ethanol; reacting the acetic acid from a first portion of the second residue with at least one alcohol; and recovering ethanol from the second distillate.    USE - The process is useful for producing ethanol (claimed), which is used as industrial grade ethanol or fuel grade ethanol, as fuel for motor vehicles including automobiles, boats or small piston engine aircraft, as solvent for toiletry and cosmetic preparations, detergents, disinfectants, coatings, inks or pharmaceuticals, chemical feedstocks, pharmaceutical products, cleansers, sanitizers, hydrogen transport or consumption, as a processing solvent in manufacturing processes for medicinal products, food preparations, dyes, photochemicals or latex processing, as a chemical feedstock to make other chemicals including vinegar, ethyl acrylate, ethyl acetate, ethylene, glycol ethers, ethylamines, aldehydes, and higher alcohols (preferably butanol).    ADVANTAGE - The process: exhibits improved operating efficiency; provides ester products which are easier to separate from the water, thus resulting in an overall improved separation process; exhibits improved energy efficiency; and is cost effective.    DETAILED DESCRIPTION - Producing ethanol, comprises: hydrogenating acetic acid and/or its ester in a reactor (103) in the presence of a catalyst to form a crude ethanol product (109); separating a portion of the crude ethanol product in a first distillation column to obtain a first distillate (119) comprising acetaldehyde and ethyl acetate, and a first residue comprising ethanol, acetic acid and water; separating a portion of the first residue in a second distillation column to obtain a second residue comprising acetic acid and water, and a second distillate comprising ethanol or ethanol and ethyl acetate; reacting the acetic acid from a first portion of the second residue with at least one alcohol in an esterification unit to produce at least one ester product stream (122), and a water stream that is substantially free of acetic acid; and recovering ethanol from the second distillate.    DESCRIPTION OF DRAWING(S) - The figure shows a schematic diagrammatic view of the acetic acid reduction system for the ethanol production process.    Reactor (103)    Crude ethanol product (109)    First distillate (119)    Esterification unit (120)    Ester product stream (122)