Current flexi fuel gasoline and ethanol engines have brake efficiencies generally lower than a dedicated gasoline engines because of the constraints to accommodate a variable mixture of the two fuels. Considering ethanol has a few advantages with reference to gasoline, namely the higher octane number and the larger heat of vaporization, the paper explores the potentials of dedicated pure ethanol engines using the most advanced techniques available for gasoline engines, specifically direct injection, turbo charging and variable valve actuation. Computations are performed with state-of-the-art, well validated, engine and vehicle performance simulations packages, generally accepted to produce accurate results targeting major trends in engine developments. The higher compression ratio and the higher boost permitted by ethanol allows larger top brake efficiencies than gasoline, while variable valve actuation produces small penalties in efficiency changing the load. Finally, small, high power density, turbo charged, direct injection, variable valve actuation load controlled engines are proved to operate very efficiently over driving cycles.