E85 is a mixture of 85 per cent ethanol and 15 per cent petrol. In New Zealand, ethanol is produced from milk whey and tallow – waste products from the dairy and meat industry.
It can be used in "flex-fuel" vehicles, which are designed to run on gasoline or ethanol blends, and provides another option for reducing imports of oil and greenhouse emissions from vehicles.
Its use in V8 supercars is relatively new, having been used in the first two rounds of championships in Australia this year. It was used by V8 supercars for the first time in New Zealand at the Hamilton 400 in April.
V8 Supercars New Zealand event director Stephen Vuleta says switching to a more sustainable fuel has been a goal of V8 Supercars for some time and E85 achieves this.
He says there is no difference in engine performance, though E85 is about 25 percent less economical. "It burns more, but it burns cleaner," Mr Vuleta says.

Hamilton 400
The lack of fumes produced by E85 is another significant benefit of the fuel, particularly for drivers in hot conditions.
The application to approve E85 for full release in New Zealand was brought by EECA, the Energy Efficiency and Conservation Authority, and paves the way for flex-fuel cars in New Zealand.
For the past two years, ERMA New Zealand has approved E85 for use in the Toyota Racing Series. However, these approvals allowed the biofuel to be used only in containment, and only for the duration of the series.
ERMA New Zealand is also pleased to announce that the Code of Practice for Motorsport Fuel – Storage and Handling has been approved.
This code of practice has been developed by Motorsport New Zealand for the handling of fuel at its events and venues. However, the scope has been widened so that it can be applied to other similar situations.
The code of practice can be read here