Abstract: In an internal combustion engine adapted to combust alcohol blend fuels (i.e., fuels containing greater than 20% alcohol by volume), a dilute combustion mixture (e.g., with substantial EGR), intake air cooling, and latent cooling caused by vaporization of the alcohol fuel, are used together with a compact combustion chamber (in which the distance between the spark plug tip and furthest point of the combustion chamber is less than one-half the cylinder bore diameter) and controlled spark retardation to enable the use of a high compression ratio (greater than 15:1), for improved efficiency without triggering auto-ignition. Thermal brake efficiency significantly exceeds that for conventional gasoline engines, thereby improving the potential cost-effectiveness of alcohol fuels. Stoichiometric operation is used for optimal emissions control.