Just brainstorming with my very limited knowledge of Chemistry, but...
Can something be added to Ethanol to change it's structure and make it more efficient? What makes Ethanol less efficient?
On a side note, it sounds like a great additive for the oil companies -- it makes people use more fuel, with most of the public not even realizing it.
That's something I've been trying to figure out lately. I haven't come up with any formula that seems to work yet. The biggest problem with ethanol is that it only has about 62% of the energy that gasoline does. Plus, it attracts moisture; sometimes right out of the air.
Horsepower is how hard you hit the wall, torque is how much of the wall you take with you.