In the present work, an attempt has been made for the effective utilization of Compressed Natural Gas (CNG) in diesel engine. A four stroke, single cylinder diesel engine was modified to work on dual fuel mode. The effect of CNG flow rate and Exhaust Gas Recirclulation (EGR) on the performance and emissions of the dual fuel engine was studied. The variables considered for the tests were different CNG flow rates (0.2, 0.3, 0.4, 0.5, 0.6 and 0.7 kg/hr), EGR (0 %, 4.28 %, 6.63 % and 8.12 %) and loads (25 %, 50 %, 75 % and 100 % of full load). From the test results, it was observed that the EGR rate of 4.28 % results in better brake thermal efficiency and lower CO and NOx emissions than other ERG rates at 25 %, 50% and 75% of full loads. At full load, EGR rate of 8.12 % results in higher brake thermal efficiency and lower NOx emissions.

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