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This paper deals with development and optimization of combustion process, cold start system and exhaust after-treatment carried out on the steady state and transient test bed as well as with vehicle development on chassis dynamometer and on the road at standard ambient temperatures and under cold conditions of a) SPFI or MPFI-SI engine with catalyst (closed loop), neat ethanol fuelled, compared to b) glow plug assisted direct injection methanol engine equipped with oxidation catalyst. The main emphasis is laid on the optimization of the cold start behaviour with and w/o catalyst in order to obtain low emissions, primarily during the first phase of the FTP 75 cycle. The emission results show that with both engine types the achievement of US-1994 limits will be possible, including a very low aldehyde emission.