The use of ethanol as a fuel for motor engines has attracted significant attention because of its possible environmental and economic advantages over fossil fuel. However, the energy demand for the ethanol dehydration process significantly impacts its production cost. A new and energy efficient process is developed on the basis of salt extractive distillation, which uses recycled MgCl 2 granules as a separating agent. Vapor-liquor-equilibria (VLE) data for the ternary MgCl 2 1 ethanol 1 water system, and the three constituent binary systems were measured at 30, 60, 90, and 101.3 kPa. A large enhancement of relative volatility of the ethanol 1 water system in the presence of MgCl 2 is observed throughout the entire ethanol concentration range, which completely broke the azeotrope. The salt effect of MgCl 2 is thought to be the result of energetic interactions and the hydration equilibrium reaction of the Mg 21 ion with water molecules. The calculation results by the mixed-solvent electrolyte model embedded in the OLI platform equipped with new model interaction parameters and equilibrium constant (obtained via the regression of experimental VLE data), provided for a satisfactory means of simulating the MgCl 2 salt extractive distillation process. Finally, the process was proven feasible at the laboratory-scale resulting in large granules of recovered MgCl 2 and a product of 99.5 wt % ethanol.