Regularities of the alcohol formation in a three-phase system in the presence of the nanosized 100Fe: 8Al(2)O(3): 3K(2)O (parts by weight) iron catalyst under the Fischer-Tropsch synthesis conditions have been determined. It has been found that the molecular-weight distribution of alcohols does not follow the Anderson-Schulz-Flory law. The principal product is ethanol; its proportion in the mixture can be as high as 78 wt %. It has been supposed that the formation of alcohols can follow the mechanism including the CO insertion in the metal-carbon bond. It has been shown that the highest ethanol yield (78 wt %) is obtained using 20 atm, 300A degrees C, and H-2/CO = 2.5 (mol/mol), an iron-containing catalyst charge in the reactor of 2 wt %.