Palm Oil Methyl Ester (POME) is a very promising alternative renewable biofuel. This is because it has a better cetane number and a comparable lower calorific value with respect to its competitors. However, due to difference in molecular composition and hence dissimilar properties, it does not perform proficiently in diesel engine with standard design and operating parameters. Therefore, a study is arranged to realize the effect of compression ratio variation on POME run in diesel engine. The load is varied from ‘no load’ to ‘full load’ with six equal intervals. During this study, standard diesel injection timing is maintained unaffected. The study conveys that at higher compression ratio, POME causes reduction in brake fuel consumption and thereby increases the engine efficiency. The increase in compression ratio also causes smoother combustion, lower ignition delay with early heat release than diesel operation. The detrimental emission quantities in the form of carbon monoxide, oxides of nitrogen and hydrocarbon emissions are also cut down with presence of POME in the diesel engine at high compression ratio. Thus, POME can be regarded as a good alternative fuel for diesel engine for locomotive applications.

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