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This paper provides an overview of the effects of blending ethanol with gasoline for use in spark ignition engines. The overview is written from the perspective of considering a future ethanol-gasoline blend for use in vehicles that have been designed to accommodate such a fuel. Therefore discussion of the effects of ethanol-gasoline blends on older legacy vehicles is not included. As background, highlights of future emissions regulations are discussed. The effects on fuel properties of blending ethanol and gasoline are described. The substantial increase in knock resistance and full load performance associated with the addition of ethanol to gasoline is illustrated with example data. Aspects of fuel efficiency enabled by increased ethanol content are reviewed, including downsizing and downspeeding opportunities, increased compression ratio, fundamental effects associated with ethanol combustion, and reduced enrichment requirement at high speed/high load conditions.

Two major barriers to wider use of ethanol as an engine fuel are ethanol's low heating value per volume relative to gasoline and higher hydrocarbon emissions at startup. Ethanol provides about one-third lower fuel economy than gasoline on a volumetric basis if the two fuels are utilized with equal efficiency, making ethanol less attractive to consumers. In addition, it is difficult to meet emissions standards such as SULEV when using E85 or hydrous ethanol, because ethanol's low volatility and high heat of vaporization compared to gasoline result in incomplete combustion when the engine is cold. A catalyst consisting of a copper-plated nickel sponge has recently been developed that enables ethanol to be reformed at around 300°C to a mixture of hydrogen (H₂), carbon monoxide (CO), and methane (CH₄). This low reforming temperature enables heat to be supplied from the engine exhaust.