History - Part 3 

In 1826 Samuel Morey experimented with an internal combustion chemical mixture that used ethanol as fuel. His discovery was overlooked due to the success of steam power and received little attention until 1860. A popular fuel in the U.S. before petroleum was a blend of alcohol and turpentine called "camphene", also known as "burning fluid". The discovery of a ready supply of oil in Pennsylvania and taxation of burning fluid made kerosene a more popular fuel.

In 1896, Henry Ford designed his first car, the "Quadricycle" to run on pure ethanol. In 1908 the Ford Model T was capable of running on gasoline, ethanol or a combination. Ford continued to advocate for ethanol fuel even during prohibition, but lower prices caused gasoline to prevail. 

Gasoline containing up to 10% ethanol began a decades-long growth in the United States in the late 1970s.  The steep growth in 21st century ethanol consumption was driven by federal legislation aimed to reduce oil consumption and enhance energy security. 

Reference

Ethanol Fuel in the United States From Wikipedia