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I have heard the argument that ethanol is energy intensive to produce. Certainly the distillation process used for drinking alcohol is very energy intensive, but I'm not sure that is the only way to get ethanol out of biomass. In a short while here in CA much of MTBE gas will be converted to 10% ethanol, so we will soon see ethanol produced in bulk. It can also be refined from crude.
Ethanol has good anti-knock properties so at higher concentrations octane rating should go up. However, the energy density of ethanol is less than for gasoline so performance and miles per gallon will go down. (This is one of the big arguments against higher % alcohol fuels.) I believe that for the same reason, you may need to jet carbs richer at higher % alcohol.
Later,
Al
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