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Ethanol with high levels of hydration is a low cost fuel that offers the potential to replace fossil fuels and contribute to lower carbon dioxide (CO2) emissions. However, it presents several ignition challenges depending on the hydration level and ambient temperature. Advanced combustion concepts such as homogeneous charge compression ignition (HCCI) have shown to be very tolerant to the water content in the fuel due to their non-flame propagating nature. Moreover, HCCI tends to increase engine efficiency while reducing oxides of nitrogen (NOx) emissions. In this sense, the present research demonstrates the operation of a 3-cylinder power generator engine in which two cylinders operate on conventional diesel combustion (CDC) and provide recycled exhaust gas (EGR) for the last cylinder running on wet ethanol HCCI combustion. At low engine loads the cylinders operating on CDC provide high oxygen content EGR for the dedicated HCCI cylinder.