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Bio-gas as an internal combustion (I.C.) engine fuel has many advantages such as cheaper fuel cost, low emission levels and especially the neutral recirculation loop of carbon dioxide, which is one of the principal factors in global warming. In this study, positive potentialities of bio-gas were investigated using a micro co-generation engine. The mixing ratio of methane (CH4) and carbon dioxide (CO2) was changed to simulate various types of bio-gases. Intake air and fuel flow rates were controlled to change the equivalence ratio. The engine load condition could be changed with the electric output power used. Base on the result, the higher CO2 content rate slowed down the engine speed in the same load condition and the combustion speed generally decreased under the same load condition with maintaining the engine speed. However thermal efficiency increased with lean burn conditions and NOX emission decreased with higher CO2 mixing rates.