Ethanol is quite popular in Sweden. The fuel is called E85 and is 85% ethanol and 15% petrol. There are two problems. You get less miles per tank, and the car doesn't start when it is cold. All E85 cars have block heaters to prewarm the engine, but what do you do in the car park? But here the fuel is cheaper than petrol, and the cars are about the same price so it is popular amongst those who can live with the disadvantages. Also these cars are exempt from the congestion charge in Stockholm. But if you can live with the range decreases then I don't see why not for aircraft.