E85 has an octane rating higher than that of regular gasoline's typical rating of 87, or premium gasoline's 91-93. This allows it to be used in higher compression engines which tend to produce more power per unit of displacement than their gasoline counterparts. The Renewable Fuels Foundation states in its Changes in Gasoline IV manual, "There is no requirement to post octane on an E85 dispenser. If a retailer chooses to post octane, they should be aware that the often cited 105 octane is incorrect. This number was derived by using ethanol’s blending octane value in gasoline. This is not the proper way to calculate the octane of E85. Ethanol’s true octane value should be used to calculate E85’s octane value. This results in an octane range of 94-96 (R+M)/2. These calculations have been confirmed by actual octane engine tests
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