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The emissions benefit outweighs the fuel economy benefit.
I've heard the problem is controlling the ignition timing. I've heard of researches using hydrogen to control timing.
How about this idea. Make the internal combustion engine closed cycle (connect the exhaust to the intake) then inject oxygen and take out carbon and water as necessary. You would need to burn a lot of hydrogen. You could use the waste heat from the engine and then you would have an external combustion engine on your hands as well.
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