As long as this is still in the theory stage:  Remember that ethanol 
is an excellant cleaning solvent.  You will need to pay extra special 
attention to your 2 cylinder compressor to make sure the essential 
mechanical parts are still being oiled.  The ethanol vapor will tend 
to wash the cylinder walls clean and also contaminate your compressor 
crankcase oil.  A thin oil film is necessary to maintain the seal 
between piston rings and cylinder walls.  Once the oil film is gone, 
the rings will have metal to metal contact with the cylinder walls. 
You may be able able to keep it operation long enough to validate 
your theory.  

As long as you are using a propane tank in the system.  Have you 
considered using a larger tank.  Using the air comnpressor draw a 
vacuum onto the tank and then use it as a stored energy source.  A 
typical thousand gallon service propane tank with special plumbing 
and valving will retain a good volume of vacuum and then with special 
valve controls, you can apply it as needed.  

> I have a big 2 cylinder air compressor I'm thinking of using. It 
has 
> an upright 60 gallon pressure tanks, that I think would be an 
> adequate condensor. 


Biofuel at Journey to Forever:
http://journeytoforever.org/biofuel.html
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