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The medium and heavy duty vehicle industry has fostered an increase in emissions research with the aim of reducing NOx while maintaining power output and thermal efficiency. This research describes a proof-of-concept numerical study conducted on a Caterpillar single-cylinder research engine. The target of the study is to reduce NOx by taking a unique approach to combustion air handling and utilizing enriched nitrogen and oxygen gas streams provided by Air Separation Membranes. A large set of test cases were initially carried out for closed-cycle situations to determine an appropriate set of operating conditions that are conducive for NOx reduction and gas diffusion properties. Several parameters - experimental and numerical, were considered. Experimental aspects, such as engine RPM, fuel injection pressure, start of injection, spray inclusion angle, and valve timings were considered for the parametric study.