It's unfortunate that the fuel itself has become a controversial topic so it's hard to have a clean conversation about it most places, like politics or religion.
It's a complex topic too so I'll put this in three categories so when somebody's telling me I'm dumb and wrong later they can be specific where.
Combustion + Power
Ethanol is a specific molecule made of Hydrogen, Carbon and Oxygen.
Petroleum (Gasoline, specifically) is a narrow range of molecules made of Hydrogen and Carbon without oxygen.
The oxygen takes up space so for a given volume (a gallon, for example) of liquid fuel, petroleum will have more H and C atoms and therefore a greater number of BTU's per pound. This is why people say that ethanol has less energy; it's one of those statements that has some truth to it but it isn't the whole story.
The oxygen is also available for combustion so it factors into your air/fuel ratio. On petroleum your engine is injecting all the H and C, and you're getting the O for free in the air. On ethanol your engine is injecting all of the H and C but also some of the O, which means you're paying for a little oxygen that you normally get for free. A gallon of E85
can be visualized as similar to 3 quarts of gasoline and one quart of liquid oxygen.
A given mass of H, C and O atoms will have extremely similar energy content whether all the HC is a liquid and all the O is gaseous (burning petroleum) or whether some of the O came in the liquid fuel (burning ethanol) so the only real difference of consequence here is whether you paid money for the O.
But that oxygen is also entering your combustion chamber without dragging a bunch of inert Nitrogen with it, so you don't have to suck as much inert N through your intake tract or push as much inert N through your exhaust system. Your engine's
effective thermodynamic efficiency is increased by reducing pumping losses.
Since ethanol is one specific molecule instead of a range of various alkenes it also takes a more specific amount of energy to initiate combustion; that happens to be a little bit more difficult than petroleum which is why the effective octane number of ethanol is much higher. A more aggressively tuned engine can extract a lot more power from ethanol due to higher effective compression ratios, more ambitious ignition timing and the direct delivery of liquid oxygen to the combustion chamber without as much nitrogen along for the ride. This is why many race vehicles use ethanol or methanol fuel, they wouldn't do that if it was a weak fuel would they?
Materials
For the past 40 years ethanol is a normal and expected component of motor fuel so all materials in all automobiles sold for use in North America are compatible with ethanol. It is not possible to make a material that is fully compatible with a dilute solvent then loses compatibility with concentration so any material compatible with E10 (the most common pump gas there is) is also fully compatible with E85 . Vehicles from the 1950s with natural cork gaskets might suffer leaks but they might anyway from being half a century or more old.
Ethanol itself is also noncovalent which is a fancy word for doesn't conduct electricity, so under typical automotive conditions ethanol cannot contribute to galvanic corrosion (the rust which occurs when two different kinds of metals interact electrically with each other)
However ethanol is hygroscopic - a fancy word for absorbing water from the air - and becomes conductive when contaminated with water. This ultimately does become a problem in the long term for engines that are used seasonally like lawnmowers or snowblowers or vehicles that get parked over winter. If I had such a vehicle I'd probably see about running my last tank as empty as possible & on 100% petroleum before putting it up for winter, and then pour some fresh gas in the tank come springtime before starting it up.
Politics + Environment
We can get annoyed by greenies but climate change is no longer a controversy. The numbers have been crunched, it's a
done deal. We know with certainty exactly how much of the carbon in the air came from us (both tax records on fossil fuel production and C14 isotope concentration, both numbers agree with each other) and we know with certainty how much that contributes to energy retention by the atmosphere (approximately 2.4W per square meter on sunlit half of planet as of 2017) and that increased energy intensifies weather phenomena which costs us all a lot of lives and money. That's not an opinion.
Petroleum is the ultimate result of sunlight that hit Earth millions of years ago and became plants. It was stored over a long period of time and is being released over a comparatively short period of time, that's the key mechanic in why we should care about whether we use fossil fuels. By comparison modern ethanol production is the result of basically the same process except it's produced and released at roughly the same rate. Plants pull carbon from the air, we mash 'em to make fuel and then we release the same carbon into the air again.
Just like all tech this process is getting better year by year, more efficient production means more profit so all the motivation we need is there and it's Americans who stand to make the most money from this thanks to the land, climate and infrastructure our ancestors secured & we've continued to build and maintain.
To put three exhaustively out of date ideas to bed: No, ethanol production is not net energy negative. That whole idea was wrong in the first place and came from a 1970's study that assumed all of the solids from ethanol production were simply dumped into a hole in the ground and weren't a valuable coproduct of fuel production. That product is DDG/DDS - dried distiller's grains - and it's crucial to meat and dairy production because it stores, transports and dispenses better than whole meal and it's healthier for the animals due to its high protein and low starch content. In other words it's not "food or fuel" it's "food and fuel", and if we stopped using ethanol as a fuel we'd still need to make just as much of it in order to keep feeding our livestock... so we'd have to start dumping that in the ground or drinking a whole lot more grain whisky. Tons of other products we all use come from the same crop from floor wax to shipping tape to synthetic "leather" shoes.
Finally the subsidy topic.. always controversial because all energy sources in the US receive subsidies and they're complex enough that anyone can look at the big picture and see what they want to see. The specific subsidy most people talk about with ethanol is the RFS, but that ended in 2011 so it's no longer relevant to 2019. Both petroleum and biofuels are massively subsidized in the USA and the exact amounts fluctuate wildly every year so any true accounting made in 2019 may not have been true last year and may not be true next year.
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I haven't converted my Ram to run E85 yet, was waiting for the warranty to run out before making any changes whatsoever to the powertrain. I've converted the last 4 vehicles I've owned & ran it in those whenever available.