Ethanol hurts mileage.
E85, if your car is converted to run it, burns VERY clean and allows for a lot more compression.
A converted E85 car will make around 15-20% more power than it's counterpart (provided you take advantage of the extra compression on the table) and get 2-3mpg less (depending on gear ratios, etc.). This is just an observation of mine looking at the Z06 guys who have converted to run it.
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