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The fuel consumption and performance of the Internal Combustion (IC) engine is improved by adopting concepts of an adiabatic engine. An experimental investigation for different load conditions is carried out on a water-cooled, constant-speed, twin-cylinder diesel engine. This research is intended to emphasize energy balance and emission characteristic for standard uncoated base engine and adiabatic engine. The inner walls of diesel engine combustion chamber are thermally insulated by a top coat of Metco 204NS yttria-stabilized zirconia (Y2O3ZrO2) powder (YSZ) of a thickness of 350 mm using plasma spray coating technology. The same combustion chamber is also coated with thermal barrier coating (TBC) bond coats of AMDRY 962 Nickle chromium aluminum yttria of thickness of 150 mm. The NiCrAlY powder specially designed to produce coating’s resistance to hot corrosion.

Energy conservation and efficiency have been the quest of engineers concerned with internal combustion engine. Theoretically, if the heat rejected could be reduced, then the thermal efficiency would be improved, at least up to the limit set by the second law of thermodynamics. Low Heat Rejection engines aim to do this by reducing the heat lost to the coolant. For current work a ceramic coated twin cylinder water-cooled diesel engine using blends of diesel and palm biodiesel as the fuel was evaluated for its performance and exhaust emissions. In recent years, Considerable efforts were made to develop and introduce alternative renewable fuel, to replace conventional petroleum-base fuels. Here, the diesel engine was insulated by Partially Stabilized Zirconia (PSZ) as ceramic material attaining an adiabatic condition. The cycle average gas temperature and metal surface temperature are higher in adiabatic engine.