We use ethanol (actually methanol - almost the same thing and interchangable) in our race car and get about 3/4 mile/gal! Ethanol hurts gas mileage because it has less energy "in" it. On the other hand, it is usable at much a higher compression ratio, and if an engine is built for ONLY E85, it can be smaller in cubic inches at the same horsepower, thereby negating the lower MPG. The E85 engines now being built (by GM for instance) have to have a lower comp ratio so that they can also be run on gasoline without detonation, and have a horsepower and fuel mileage disadvantage.