A brief summary of what I found in the SAE Bosch Automotive Handbook (5th Edition).
Alternative fuels methanol and ethanol are being explored. Ethanol is only being used extensively in Brazil due to availability. Methanol is being mixed with gasoline, up to 85% (M85). Methanol generates lower NOx and CO2. Alcohols are more demanding on engines and fuel delivery components. MOisture , acids and gums contained in the fuel pose a hazard to metals, plastics, and rubber. Methanols higher anti-knock characteristics allow higher compression ratios for engines that run exclusively on methanol (not Flexible fuel cars). Methanol has a lower calorific value than gasoline which requires special injectors. Also the higher rates of consumption require larger fuel tanks. O2 sensors are mentioned but it is not clear if wide bands, or some other special O2 sensor is required. "Special" lubricants are needed for long term stability when exposed to the fuel and its combustion by products. Flex fuel cars have a sensor that detects the amount of methanol in the fuel so that the computer can make the necessary changes.
These are some of the design issues that concern the major auto makers
it takes about twice the methanol versus gas. I have ran methanol on a 9:1 compression motor before. The only problem was getting it to start on cold days. This is fixed by starting it on gasoline. It is pretty corrosive and attracts moisture. Had to change the oil about every 20-25 runs. It has a high knock resistance and the biggest advantages of it are reached by running high compression. It costs about 2.00 a gallon (but i was told this past weekend it would be going up about .40 to .50 a gallon). It is fairly corrosive, i have taken apart a bg280 pump i ran with all year and the vanes and rotor had definetly had some etching and metal erroded from them. running it through fuel injectors probably wouldn't last too long, would start to corrode and eat them up. It also isn't to friendly to rubber or raw aluminum (not anodized).
So if I lived in florida where I would NOT have to worry about cold starts, and even though it burns twice as fast as gas if it was half the price of gas could you run it all the time in a daily driver ?
Running on M85 would be a better solution at this time. M85 is used by the military, and other industrial areas, so it can be found in most parts of the country. Cold start is not a concern and you get the benefit of running higher compression.
running pure methanol on an everyday driver is not really going to work that great. you would have to completely redo your fuel system and get injectors that would be up to the task. (you need alot more fuel flow) plus you would need to flush the system with gasoline very often to keep the injectors from corroding up(at least this is what is said on MSD's website since they carry alcohol compatable injectors). it sounds easier said than done. the m85 is the closest thing you would get to doing what you would like to do since it is a blend of both.
in the long run it is going to cause you alot more headache and price for what it is worth. at around 2.00-2.50 a gallon and using 2-2.5 times as much than gasoline, it will cost more to run it.