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A study was carried out in which most aspects of dimethyl-ether (DME) as an automotive fuel were critically evaluated. DME appeared to have positive characteristics from both the energy supply and security point of view as from an exhaust emissions point of view. DME can be made from a wide variety of fossil feedstock, among which natural gas and coal, and from renewable feedstock and waste. These energy sources will last longer than crude oil. A comparison was set up between DME and other regular and alternative fuels. This comparison covers engine exhaust emissions and well to wheel energy efficiency and CO2 emissions. It appeared that the exhaust emissions of DME fuelled engines are comparable to lean burn gas engines (heavy-duty) or otto engines with three-way catalyst (light-duty). With respect to well to wheel CO2 emission DME is rated equal to the diesel engine. Compared to natural gas DME measures from about equal (heavy-duty) to about 10% better (light-duty).