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Both ethanol and methanol have been considered for this purpose
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Fuel Alternatives

In the difficult market, a decline in oil and gas prices may be a welcome relief. But, this would be for a short term, and the development of alternative fuel sources that are cheaper in price and more competitive in quality is equally important for the panting auto industry. Currently, research and development is largely centered on hybrid options. Development efforts are also taking place on fuel cells and the stored energy of compressed air.

Further, attempts have been made to use alcohol as a fuel for internal combustion engines, either alone or in combination with other fuels, mostly because of its environmental and long-term economical advantages over fossil fuel. Both ethanol and methanol have been considered for this purpose. Compressed Natural Gas, hydrogen, LPG, solar power etc. have also been tried out as options. However, a concrete solution is yet to be identified, without which the troubles in the automobile sector are unlikely to be resolved.

http://www.tradingmarkets.com/.site/news/TOP%20STORY/1903524/

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