1) Take a hot pan, and pour your wine into the pan.
2) Lower the temperature just so it's simmering in the pan.
3) You're going to want the wine to reduce by half, so keep that in mind as you pour it into the pan. This could take up to an hour or more.
3) As the wine is reducing the alcohol is actually cooking out so you won't have the flavor of alcohol in your dish.
Wine reductions are good for several things, to enhance the flavors of sauces, meats, stews or soups. When you reduce the wine what happens is the flavors concentrate as the water or alcohol evaporates out of of the product so you have a really nice strong wine flavor in your dish.