Alcohol as an "extender" for fuel is probably the best you can do. A few years back they tried to market Gasohol which was 10% alcohol with gasoline, but it was more expensive than straight gasoline.
The public bus system here in L.A. bought a fleet of alcohol powered buses a few years back. They sued the manufacturer when they didn't perform as required. The biggest headache was having to refuel them during the day. A diesel would run all day on its fuel tank capacity. Then the engines started to fail within months of service. The company tried to retro-fit diesels into these buses as a solution to the lawsuit.
Don't know if this was agreeable to the city, but you don't see anymore alcohol powered buses on the street any more.