Finally, adding ethanol actually raises the price of blended fuel because ethanol is more expensive to transport and handle than gasoline.

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AgResource's Basse estimates the blending demand for ethanol at 10 billion gallons, 7% of the 150 billion gallons of blended fuel burned each year.

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Those molecules could then either be blended into ethanol, or burned directly in a high-octane fuel.

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Ethanol, added to motor fuel, is a great oxygenate and can stretch gasoline supplies blended from 10 to 85 percent by volume.

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