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Its a measurement of energy. Just because it can compress and expand doesnt give it any more energy. The amount of energy ethanol fuel gives off when burned is less then when gas is burned in a combustion engine.
There are been improvements with direct injection and turbocharging where they can make much more power. Saab showed a 300-400hp turbocharged engine using E100.
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2/20/2013: They Day the ****s Stopped
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