If you have over 10% ethanol added to petrol (gas), it can corrode the fuel pipe, but this can be overcome by using those designed for boats, which are proofed against salt water corrosion.
Here in the UK, petrol can have up to 5% ethanol added to it.Diesel has up to 2.5% bio-diesel added.
Unless the ethanol is produced by an environmentally friendly method, it can consume more energy that it produces.
The engine would produce less power and would use 30% more ethanol to cover the same distance that the same amount of petrol would get as ethanol contains less energy.
Most cars would not be able to use 100% ethanol, as their engine management systems would not recognise it. In countries like Brazil, 'flexi-fuel' cars can accept any blend of petrol/ethanol, (depending on what is available and the price) and the ignition system and carburettor would be automatically adjusted for the best combustion.Brazilian law insists that all petrol powered cars should be 'flexi-fuel'.
I can think of only one car maker (Saab) that produces a 'flexi-fuel' model for the UK and a pump with 100% ethanol is very hard to find here.