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The following is from a report from the Minnesota Office of Legislative Auditor.
Minnesota’s Ethanol Programs
Minnesota’s Ethanol Programs
Pure ethanol has an octane rating of 129. It is used in the IndyCar Racing League. E10 contains 3% less energy than pure gasoline. If your car runs poorly on E10, or has a mileage drop of more than 3%, now you know why.Under some circumstances, ethanol has value as an octane enhancer. Ethanol can be blended with a cheaper, lower grade of gasoline and the resulting product meets higher octane specifications. We talked to representatives of the three refiners serving the Minnesota market.
One company says they do not blend ethanol with a special low-octane blend in order to get regular-grade gasoline. (Regular gasoline accounts for about 70 percent of gasoline sold.) Two refiners said they did blend lower octane gasoline with ethanol for the Twin Cities, but not the outstate market. The lower-octane gasoline costs .5 to 1.25 cents less than regular grade, but induces additional storage and handling costs.