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The newly developed rotary engine has achieved major progress in high performance, improved fuel economy and clean exhaust gas by innovative action. The engine of the next generation is named RENESIS, which stands for “The RE (Rotary Engine)'s GENESIS” or the rotary engine for the new millennium. The peripheral exhaust port of the previous rotary engine is replaced by a side exhaust port system in the RENESIS. This allows for an increase in the intake port area, thus producing higher power. Exhaust opening timing is retarded to improve thermal efficiency. The side exhaust port also allows reducing the internal EGR, stabilizing the combustion at idling. The improved thermal efficiency and the stabilized idle combustion result in higher fuel economy. In addition, the side exhaust port allows a reduction of the HC mass, realizing reduced exhaust gas emission.