Diamond Enthusiast

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I've never owned or driven one of these, but I'll tell you what I know.
Its also known as gasohol. Other proportions are also possible, such as E10, which is 10% ethanol, requires no engine modification, and is quite common.
The vehicles typically, but not always, cost a bit more (a few hundred to a couple thousand) than their gas counterparts. This is probably not the fault of the fuel as much as because it is a small market. The engines have to be modified becasue ethanol can dissolve rubber and plastic.
There is some disagreement as to how much energy you can get out compared to the amount you put in (the amount used by the farming equipment and in the process that turns the corn, soybeans, etc. into fuel. Aside from turning the plants into ethanol, the ethanol has to be purified extensively (more extensively than is possibly by distillation) if it is to be mixed with gasoline. It is possible to use it without gasoline in the mixture, but the gasoline is needed for cold weather. Critics have said that it actually takes more energy to make ethanol than the energy you get out of it.
Advocates claim a 33% energy gain is typical and that an almost 90% energy gain is acheived using the newest technologies. They also make the point that only part of the corn is used and the rest can be used for corn oil, animal feed, gluten, and carbonation.
Ethanol is less efficient, but it also costs less. This means it ends up costing about the same to travel a given distance, but you can't go as far between fillups.
Currently, ethanol is tax-subsidized. There is some question as to whether it can be cost-effective without subsidies. Advocates say it can when production scales up, as techniques are refined, and as a distribution infrastructure is installed.
On the subject of infrastructure, places to fill up obviously aren't as common.
It is a cleaner burning fuel. Advocates say that because of thise (aside from the obvious pollution-related benefits), engines running on ethanol will last longer. I haven't heard any criticism of the operation of these vehicles.
Arguments on the basis of adding to the local economy, reducing oil dependence, reducing pollution, and other such ideas have been made.
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