And here's why:
Methanol, as a fuel, has a lower energy density (15.6 MJ / L max) than both gasoline (octane, 34.6 MJ / L) and diesel (cetane, 38.7 MJ / L).
Ref:
http://en.wikipedia.org/wiki/Energy_density .
Per unit of fuel injected, methanol makes less power than either gasoline or diesel.
However, it (methanol) will burn somewhat efficiently at very rich mixture ratios - rich of it's stoich, possibly lower than 6.0:1.
Gasoline engines typically lose efficiency under 12.0:1 (as a nice round number).
Diesel engines will gain power until they reach the lean-burn limit of the fuel, typically over 30:1. We have measured this.
Methanol is also highly resistant to detonation, allowing higher compression ratios / boost and more aggressive ignition timing.
Doing the math, and using gasoline as a baseline:
Methanol volume to equal gasoline power potential:
34.6 / 15.6 = 2.22, or 220%. Over 2.2x the amount of methanol vs. gasoline required to achieve the same energy potential.
Methanol volume to equal diesel power potential:
38.7 / 15.6 = 2.48 or 248%. Over 2.4x the amount of methanol vs. diesel required to achieve the same energy potential.
In normal racing gasoline engines, the limiting factor to power generation is the amount of oxygen present in the cylinder at combustion.
Airmass / fuelmass = air:fuel ratio
If you're stuck on airmass, your only option is to add more fuel to increase power. Past stoich, you get dimishing returns on this until you hit the rich-best air:fuel limit of the fuel.
With alcohol, this just happens to be about twice gasoline (rich-best ratio at 6 instead of 12). Alcohol has other benefits, though, as mentioned above - detonation resistance, etc., that make it more desirable overall than gasoline in certain applications.
Now, on a diesel engine, where we have (for the sake of argument) unlimited potential oxygen available in the combustion chamber (via both boost and nitrous oxide), we are essentially fuel limited - as much fuel as you put (efficiently - reasonable injector on-time) into the engine, you can lean it out with air.
If we switched to alcohol, we'd have to run 248% more fuel to make the same power, but would require less oxygen to get the job done.
The point being is not to belive all the B.S. posted up on some websites. Anybody using the "they're running alcohol" line obviously has no clue how it works. If you want to see the fuel being used feel free to ask the race team.