I posted something here about that. I thought so too, but after looking into it seems like up to 30% E85 is considered safe in modern cars. In fact some EU countries they already mix up to 5% E85 to make production cost cheaper.
"In the UK, in 2005, tax concessions for ethanol encouraged a minor shift and a 5% ethanol mixture entered the retail market. A firm called Greenenergy pioneered this and Tesco have been reported as the retailers (mainly in SE England), the ethanol source being Brazilian sugar cane. The real motivation may be cost (although the reduction in price to the UK customer is small) but even so that is no bad thing. In 2006 another supermarket, Morrisons, started selling E85 bio-ethanol in East Anglia. The 5% mix can be used in most petrol vehicles but the 85% mix is limited to a very small number of current vehicles. "
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