I've always been told if you can see the heat source use that shiny stuff, and if you can't to depend on the air gap. So think like an infrared light and metal objects. Instead of absorbing the infrared it'll bounce off more. But with that said i would just go with airgap on this one. Toyota oem engine bay insulation is just yellow fiberglass, albeit more compressed since its more for sound and not for heat retention.
I'll have to add a pic of my engine bay.
$20 warm air intake tube, $2 in foam, and $4 in insulation later and i have a car that can do 60mpgs in the winter with the heat on. I never have to worry about dropping below like 170s and the car won't go over 202, even the inverter temps are good.
Its seems so good when temps get above 60s again i will leave the insulation and just unplug the grills in order of what i need to maintain good inverter temps and what the cooling system for the engine can handle.
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"I feel like the bad decisions come into play when you trade too much of your time for money paying for things you can't really afford."
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