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Lower proof ethanol is shown to be a viable alternate fuel for diesel engines. This type of ethanol can be manufactured economically in small distillation plants from renewable grain supplies. The effect of fumigation of ethanol proofs with a multipoint injection system on a turbocharged direct injection diesel engine at 2,400 rpm and three loads was studied. The addition of the water in the lower proofs reduced the maximum rate of pressure rise and peak pressure from pure ethanol levels. Both of these values were significantly higher than those for diesel operation. HC and CO emissions increased several times over diesel levels at all loads and also with increased ethanol fumigation. NO emissions were reduced below diesel levels for lower proof ethanol at all loads. The tests at this rpm and load with a multipoint ethanol injection system indicate that lower (100 or 125) proof provides optimum performance.