I haven't heard any arguments that ethanol in itself is a bad fuel, in fact the Brazilians are doing a hell of a nice job with it using a sugar cane base. I have noticed a decrease in fuel economy as noted, more so with the motorcycle than the cars, but doing the math as far as cost it doesn't really bother me too much.
My problem with blended gasoline is the blending process itself (which I've discussed at length in this thread already). Reformulated gasoline relies on ethanol for alot of things, but one in particular is reaching a desired octane. The 87 octane fuel is really an 83 octane pre-blend and relies on the ethanol to boost the octane. That compounded with ethanol's cleaning properties and water retention (even from the atmosphere, like brake fluid) while being stored and transported really turn me off. I'm sure there's a better way of doing it, but this is probably the cheapest.



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