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Originally Posted by Ohio Enthusiast
Nitpick - Ethanol has less energy per weight, that's why you get worse milage with E85 (you need more fuel for the same power). E85 resists knock better and allows you to tune for higher power without risking pre-ignition.
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It's less energetic by weight but the ratio is much richer which overall means the fuel charge does have more energy. A lot of the benefits of E85 come from other factors like latent heat of vaporization and knock resistance.