Praise be to Allah.
It is haraam to consume, carry, sell or buy alcohol, and ten types of people are cursed with regard to it, as it says in the hadeeth narrated by at-Tirmidhi (1295) and Abu Dawood (3674) from Anas ibn Maalik (may Allah be pleased with him), who said: The Messenger of Allaah (peace and blessings of Allaah be upon him) cursed ten with regard to wine: the one who squeezes (the grapes etc), the one who asks for it to be squeezed, the one who drinks it, the one who carries it, the one to whom it is carried, the one who pours it, the one who sells it and consumes its price, the one who buys it and the one for whom it is bought.
Calssed assaheeh by al-Albaani in Saheeh at-Tirmidhi
It is not permissible to manufacture alcohol for drinking or for medical purposes, because of the report narrated by Abu Dawood (3874) from Abu’d-Darda’ (may Allah be pleased with him), who said: The Messenger of Allah (blessings and peace of Allah be upon him) said: “Allaah has sent down the disease and the remedy, and He has created for every disease a remedy, so treat disease but do not treat it with anything that is haraam.”
Classed as saheeh by al-Albaani in Saheeh al-Jaami‘, 1762
Muslim (1984) narrated from Waa’il ibn Hijr (may Allah be pleased with him) that Taariq ibn Suwayd al-Ju’fi asked the Prophet (S) about khamr, and he forbade him or expressed his disapproval of his making it. He said: I only make it as a remedy. He said: “It is not a remedy, but it is a disease.”
This clearly indicates that it is haraam to use alcohol for medicinal purposes and that it is not a remedy; rather it is a disease.
An-Nawawi said: This indicates that it is haraam to use and produce alcohol, and it clearly indicates that it is not a medicine, so it is haraam to use it for medicinal purposes, because it is not a remedy, so it is like consuming it for no reason. This is the correct view according to our companions. End quote.
Ibn Mas‘ood (may Allah be pleased with him) said: “Allah has not put your healing in that which He has forbidden to you.” It was also mentioned by al-Bukhaari in a mu‘allaq report (5/2129)
If the alcohol is being made for drinking or to use as a remedy or as part of a remedy, it is not permissible for the student to take part in producing it, and he has to do announce his stance and show pride in his religion, and refuse to participate in something that is haraam.
If it is being produced in order to find out the chemical properties of alcohol, and what is produced will be destroyed and not drunk or put into medicine, then it is permissible, but it is haraam to taste it; tasting it should be left to non-Muslim colleagues.
Based on that, in order for the student to participate in this production experiment, it is stipulated that the alcohol should be destroyed and no one should be allowed to drink it or put it into medicine. If these conditions are accepted, there is nothing wrong with him participating; otherwise he should refrain from participating even if that will lower his grade. All the Muslim students should refuse to do that and ask the university to accommodate their religious needs.
And Allah knows best.