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Near-term energy policy for ground transportation is likely to have a strong focus on both gains in efficiency as well as the use of alternate fuels; as both can reduce crude oil dependence and carbon loading on the environment. Stratified-charge spark-ignition direct-injection (SIDI) engines are capable of achieving significant gains in efficiency. In addition, these engines are likely to be run on alternative fuels. Specifically, lower alcohols such as ethanol and iso-butanol, which can be produced from renewable sources. SIDI engines, particularly the spray-guided variant, tend to be very sensitive to mixture preparation since fuel injection and ignition occur within a short time of each other. This close spacing is necessary to form a flammable mixture near the spark plug while maintaining an overall lean state in the combustion chamber. As a result, the physical properties of the fuel have a large effect on this process.

A summary of the design and development process for a Formula SAE engine is described. The focus is on three fundamental elements on which the entire engine package is based. The first is engine layout and displacement, second is the fuel type, and third is the air induction method. These decisions lead to a design around a 4-cylinder 600cc motorcycle engine, utilizing a turbocharger and ethanol E-85 fuel. Concerns and constraints involved with vehicle integration are also highlighted. The final design was then tested on an engine dynamometer, and finally in the 2007 M-Racing FSAE racecar.