The conversion of ethanol and fusel oils to a D-3-D-12 alkane-aromatic fraction with high activity and selectivity in the presence of the Pd-Zn/TsVM pilot catalyst has been demonstrated. It has been shown that the ethanol conversion to alkanes and aromatic hydrocarbons in the presence of this catalyst proceeds by various routes to give ethylene and diethyl ether as intermediate products providing a 90-95% yield on the converted ethanol carbon basis for the target D-3-D-12 fraction containing up to 40% of branched alkanes.