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The strong demand for diesel fuel is producing a surplus of gasoline fractions in Europe. Despite new vehicles using less energy, the rising volume of traffic will lead to more diesel being consumed. European legislation demands that renewable fuels cover 10% of energy consumed in the transport sector. The present strategy of dividing biofuels in equal shares between diesel and gasoline does not help to improve this situation. It seems reasonable not only to add FAME but also ethanol to diesel. Unfortunately, fuel blends containing ethanol cannot be used in existing cars without hardware modifications. This is because of ethanol's characteristics and well-known from the experience gathered with gasoline cars. As such, the first part of this study investigates material compatibility, focusing on corrosion and changes to the mechanical properties of the materials used in diesel engines.