Reference Volvo OM for 240, 1986 MY:
1986 Volvo 240
"Gasoline Containing Alcohol
Some fuel suppliers sell gasoline containing alcohol without advertising the presence of alcohol. If you are not sure whether there is alcohol in the gasoline you buy, check with the service station operator.
Blends of unleaded gasoline and ethanol (ethyl alcohol, grain alcohol), sometimes called "gasohol", are available in some areas. Gasohol, if used, must contain no more than 10 percent ethanol and must have an (R+M)/2 rating of 87 or higher. If you experience problems with starting, driveability, or fuel economy with gasohol, you should discontinue its use.
Take care not to spill gasoline during refueling. Gasolines containing alcohol can cause damage to painted surfaces, which may not be covered under the New Vehicle Limited Warranty. Do not use gasolines containing methanol (methyl alcohol, wood alcohol). This practice can result in vehicle performance deterioration and can damage critical parts in the fuel system. Such damage may not be covered under the New Vehicle Warranty."
Oregon State Maraine Board (Oregon.gov):
Oregon State Marine Board E-10 (Ethanol) in Gasoline and Where to Find Non-Blended Gas
"Water Hazards
Ethanol absorbs water extremely well. Marine fuel systems are very susceptible to water intrusion. E10 has the ability to absorb a certain amount of water into solution and simply allow it to be burned by the engine. Here痴 the comparison: MTBE gasoline can hold about 60 ppm (parts per million) of water in solution; E10 can hold 6,000 to 7,000 ppm of water in solution. Meaning, if you have a 100 gallon (378.5 liters) tank, it could hold up to .6 - .7 gallons (2.3 2.6 liters) of water in solution.
The biggest problem with ethanol for an alternative is with 菟hase separation. That痴 what happens when the fuel is saturated beyond it痴 capacity to hold water in solution. Water and gasoline actually separate, and the gasoline floats on top of the water. With MTBE you could simply pump the water out from under the gasoline, or let your filters remove the water. With E10, ethanol blends more easily with any water. When phase separation occurs in E10, the ethanol is pulled out of the gas and absorbed by water. This results in two solutions, neither of which is good for the engine or fuel system?ot to mention the environment. The gasoline left behind is absent of oxygenate. The water left behind now contains a high concentration of ethanol; this solution is highly corrosive and damages any material it may come in contact with in the fuel system. The only solution for phase-separated fuel is to dispose of the entire fuel load, clean the tank, and start over with a fresh tank of E10.
E10痴 ability to absorb water has yet another drawback; it can absorb water directly from the atmosphere through the vent while simply sitting in the tank. In just 100 days at 70% humidity, E10 can absorb enough water to phase-separate. The shelf life of E10 is only 60-90 days if left without treatment."