Very similarly to gasoline or diesel powered engines. Those engines use a system of combustion, as does an alcohol powered engine. Another name for this engine type is an Ethanol Powered Engine. Ethanol powered motors are geared specifically for ethanol, so any other engine would need to be reconfigured and reconverted to withstand the compression rate and heat-to-volume ratio that Ethanol withstands. Essentially, these engines are more efficient than gasoline, because the compression rate of Ethanol is higher than that of gasoline.
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