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Combustion characteristics of dimethyl ether, DME, have been investigated experimentally, in a heavy duty single cylinder engine equipped with an adapted common rail fuel injection system, and the effects of varying injection timing, rail pressure and exhaust gas recirculation on the combustion and emission parameters. The results show that DME combustion does not produce soot and with the use of exhaust gas recirculation NOX emissions can also be reduced to very low levels. However, high injection pressure and/or a DME adopted combustion system is required to improve the mixing process and thus reduce the combustion duration and carbon monoxide emissions.