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Energy conservation and efficiency have been the quest of engineers concerned with internal combustion engine. Theoretically, if the heat rejected could be reduced, then the thermal efficiency would be improved, at least up to the limit set by the second law of thermodynamics. Low Heat Rejection engines aim to do this by reducing the heat lost to the coolant. For current work a ceramic coated twin cylinder water-cooled diesel engine using blends of diesel and palm biodiesel as the fuel was evaluated for its performance and exhaust emissions. In recent years, Considerable efforts were made to develop and introduce alternative renewable fuel, to replace conventional petroleum-base fuels. Here, the diesel engine was insulated by Partially Stabilized Zirconia (PSZ) as ceramic material attaining an adiabatic condition. The cycle average gas temperature and metal surface temperature are higher in adiabatic engine.

The main focus areas of today's IC engine design are energy efficiency and higher thermal efficiency. As there is a high amount of heat loss in atmosphere due to which the efficiency is lower for the standard engine. There is one possible solution to reduce such problem i.e., converting the conventional CI engine in to the LHR engine. For the current work the performance and emission characteristics are evaluated for the twin cylinder ceramic coated water cooled CI engine using blends of diesel and neem bio diesel. For the present work the bio-diesel was prepared in laboratory from non-edible vegetable oil (neem oil) by transesterification process with methanol, where potassium hydroxide (KOH) was used as a catalyst. Combustion chamber inner wall, Piston top surface (crown) and valve faces were coated with the Magnesium Zirconate (MgZrO3).