Ethanol is a grain alcohol that can be blended with gasoline and used in motor vehicles. Many gasoline stations provide a blended fuel, which typically is 10 percent ethanol and 90 percent gasoline.Vehicles do not need any modifications to use this blend of fuel.thanol is a grain alcohol that can be blended with gasoline and used in motor vehicles. Many gasoline stations provide a blended fuel, which typically is 10 percent ethanol and 90 percent gasoline.