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I do petroleum work ( tanks, pumps, lines, dispensers ect.. ) Its not the ethanol that really damages stuff, more humidity/water than anything. Granted, ethanol is some bad stuff as we have encountered ( eats up some meters in gilbarco/wayne/tokhiem equipment, eats seals that are not viton, eats up older rubber lines, also will break free rust, muck and grime up inside of old tanks and lines. ) But the main problem with ethanol is that it mixes with water. The process is called phase seperation, which basically the water will suspend at multiple levels in the gas unlike straight gas where the water sits at the bottom and can be drained/pumped out. We have dealt with alot of this stuff and it is a pain.

The ethanol itsself is pretty much straight corn liqour + an added amount of chemical to prevent you from drinking it ( cant remember the name of it ) It burns better than gas but nets a much MUCH lower mpg.
 
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