The purpose of the research was to investigate the potential of using a mature bio-fuel in heavy-duty compression ignition engines. By co-optimizing both the fuel characteristics and engine system the potential for a superior outcome was demonstrated. The use of wet bio-ethanol eliminates the majority of the energy intensive distilling and dehydrating fuel production processes, which moves the fuel towards carbon neutral and also lowers the fuel costs. The relatively high water content of the resulting fuel is leveraged in the proposed novel combustion system by incorporating an integrated high efficiency exhaust waste heat recovery system. This results in significantly higher thermal efficiency. In addition the combustion system features low criteria pollutant emissions and the potential to reduce the initial cost of the engine system hardware. Substantial societal benefits are demonstrated through the co-optimization of the fuel and engine system. A computational proof-of-concept study has been performed to demonstrate the potential benefits of a novel wet ethanol heavy-duty compression ignition combustion system featuring integrated exhaust waste heat recovery. A combined in-cylinder closed cycle 3D computational fluid dynamics (CFD) - 1D engine system simulation approach was used. The models were validated to baseline engine data using diesel fuel and then applied to the wet ethanol study. The original concept was to maximize exhaust waste heat recovery through supercritical reforming of the wet ethanol fuel. Phase I simulation results indicated that the optimal solution for maximum engine efficiency gains were realized through maximizing thermo-mechanical recuperation with negligible fuel reformation. The results show the potential to achieve impressive gains in brake thermal efficiency (BTE) over the base diesel engine. The potential to increase BTE up to 20.9% over the base diesel engine was demonstrated, with even larger gains possible through reduced in-cylinder heat transfer losses. The majority of the efficiency gains were realized through integrated high efficiency exhaust waste heat recovery. The concept also has the potential to achieve future ultra-low NO<
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emissions standards and negligible engine-out soot emissions. The mixing controlled combustion of high temperature wet ethanol features relatively low engine-out NO<
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emissions without the need for exhaust gas recirculation (EGR). The soot free combustion enabled by the relatively high oxygen content of ethanol also allows for the use of stoichiometric mixing controlled combustion, which is not practical with diesel fuel. When stoichiometric combustion is used a simple passive 3-way catalyst can be used for exhaust emissions after-treatment and near zero tailpipe emissions. The Phase I simulations results have defined the system layout and requirements in preparation for the Phase II experimental proof-of-concept study. The potential applications of the research include most current applications of diesel engines. The Phase I study focused on heavy-duty on-highway class 8 trucks. However, virtually any application that requires highly efficient clean power generation would benefit from the novel engine system proposed. The results indicate substantial fuel cost savings and reduced greenhouse gas emissions with similar or reduced initial system hardware costs compared to modern diesel engine systems.