GERRY - Ken's correct, if he's burning ethanol, it has about 2/3rds the heat energy as gasoline, so you have to burn quite a bit more ethanol, which the latent heat of vaporization cools the engine a lot better, and the combustion temps are lower.
Ethanol & Methanol are great engine fuels, relatively high octane, alcohol engines like LOTS of compression, and spark advance, and the cool burning makes them relatively easy on parts. I'd like to build up a Kohler to run on ehtanol, even E85. Alcohol does have some issues as a fuel, it absorbs moisture out of the air, it's hydroscopic, and it tends to dilute engine oil, but on a good hard pull the pretty blue flame out the exhaust more than makes up for those issues. Couple places close to home sell 100% Ethanol motor fuel.
SON has a co-worker who just put his '70 Nova back on the street, it's kinda a "Pro-Street" car, 600+ CID BBC running E85 making just a little over 1000 HP. My little Kohler would be along those lines, just not as big, probably a K241. Only problam with the Kohler is it's really hard to build compression in a flat head engine.