Almost as good as an oil thread this!
All I can say is that I've run mine on Supermarket unleaded since 2002, with no obvious ill-effects, other than carb furring up over winter, and it did that pre-ethanol too. Ethanol definitely goes for the tap rubbers, but my view is that it would run on kerosene or TVO once warm, although overheating might be a problem. Using ethanol-free fuel would resolve the rubber issue, and possibly improve the carburettor furring issue, but as ethanol increases octane rating I see no advantage in using premium fuel for that reason alone.
Just my opinion of course, but this from the AA pretty much covers it:
Pros and cons of EthanolEthanol is compatible with modern exhaust emissions control systems and contains oxygen so enhances combustion and reduces CO and HC emissions. It has a high octane number so helps combustion.
But
Ethanol’s energy density is about 2/3 of conventional petrol so fuel consumption will be a little higher and volatility is increased which can contribute to higher evaporative emissions.
Critically Ethanol has higher solvency causing compatibility problems with rubbers and
can cause corrosion in aluminium, zinc and galvanised materials, brass, copper and lead/tin coated steels.
Ethanol picks up water and
contributes to corrosion and phase separation where Ethanol and any water held in solution can separate out into distinct layers.
Ethanol can also cause starting problems at low temperatures.