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Ethanol is a viable option as an alternative fuel when it's produced in an efficient way. In Brazil the main feedstock is sugarcane, but nearly any agricultural residue with some amount of starch or cellulose can be used as a feedstock for ethanol. Regarding efficiency, running pure ethanol into a compression-ignited (Diesel cycle) engine will overcome the 30% consumption increasement (in volume) from a spark-ignited engine.
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