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Dimethyl Ether has been proposed as alternative fuel for combustion engines. The paper gives a brief overview of resources, production, distribution and use of different automotive fuels and compares Dimethyl Ether with other oxygenated synthetic fuels recently proposed. For use in combustion engines Dimethyl Ether requires the introduction of new technologies, mainly in the field of fuel injection systems for direct injection. Such a fuel injection system is described in detail and measured characteristics are shown. For assessment of Dimethyl Ether from the environmental point of view, efficiencies and emissions during production and use of different fuels are summarized and discussed. For evaluation of environmental impacts a method is introduced which compares technical processes with natural cycles of substances and thus determines their “sustainability”.