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E85 is a fuel that is made up from 85% ethanol and 15% benzine.
Ethanol can be gained from agricultural substances like crop, corn or sugar beets. The commodities have to be attenuated and destilled, the alcohol gained in this process is used as fuel.
A FlexiFuel Vehicle (FFV) ejects in E85-operation only half of the nitrate that benzine does. But the biggest difference is, that in E85-operations the carbon dioxide ejection is reduced up to 80%.
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