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What I know about EGR valves is they reduce emissions as does the PAIR system. You do no mention what compression ratio you plan to run. On the hydrogen fuel cars EGR was used to reduce pre ignition. Since you are blending fuel this is less of an issue.
You have done a great deal of research already. Consider using a higher efficiency engine such as a Sterling or diesel generator unit. A unibody shell could be lighter still. If your power to weight ratio is 1 hp :36 lb. and your Cd is under 0.30 the power needed can be minimized. Check your state DMV requirements too.
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