well the problem with ethanol fuel is its BTU factor which as about half that of gasoline which means your going to consume twice the ammonut of fuel you did befor if you want the same power. ethanol will eat though rubber seals commonly used in current engines.
id see propane as a good alternative fuel which has a compairable BTU factor its non toxic and evaporate if spilled burns clean enough to be used in doors(not that it matters). it has some Octane rating around 120 so you can run some good boost
although using ethanol would help our over grow food market and help the farmers.
but i suppose though cracking you could break down pretty much any fuel down to a propane...iso-butane..what have you.