Ethanol is made from soybeans,methanol is made from fossil fuels,hydrogen + carbon monoxide through a catalyst bed.
I "HEARD" the New E85 fuel(85% ethanol/15% gasoline) is over 100 octane.Their are some guys with turbos testing it and found you can run higher boost compared to gasoline.Just have to burn more of it.So don't understand the part about engine knock with ethanol