Henry Ford and Fuel Ethanol

Why Henry's plans were delayed for more than a half century - Canadian Renewable Fuels Association:

But gasoline had many disadvantages as an automotive source. The "new" fuel had a lower octane rating than ethanol, was much more toxic (particularly when blended with tetra-ethyl lead and other compounds to enhance octane), was generally more dangerous, and contained threatening air pollutants. Petroleum was more likely to explode and burn accidentally, gum would form on storage surfaces, and carbon deposits would form in combustion chambers of engines. Pipelines were needed for distribution from "area found" to "area needed". Petroleum was much more physically and chemically diverse than ethanol, necessitating complex refining procedures to ensure the manufacture of a consistent gasoline product.
Because of its lower octane rating relative to ethanol, the use of gasoline meant the use of lower compression engines and larger cooling systems.