The world is currently facing an energy challenge. Even though nanotechnology has the potential to significantly advance a wide range of disciplines, there are concerns about the potential hazards of its products and uses. The primary cause for concern is nanoparticle toxicity and its possible absorption into the body. Because metallic and metal oxide nanoparticles can have harmful impacts on living beings, the introduction of biocompatible nanoparticles can considerably reduce these problems. In this investigation, a modified bio-nano diesel emulsion fuel is presented that saves energy, reduces pollution, and enhances diesel engine performance. The biodegradable carbon quantum dots (CQDs) were synthesized from mosambi peels via a catalytic technique and then extensively examined. Experiments were performed on single-cylinder water-cooled engines with varying loads, compression ratios, and engine speeds. Water and CQDs were introduced into B20 at successive levels of integration of 3&#37;, 5&#37;, 10&#37;, and 25 ppm, 50 ppm, and 75 ppm, respectively. The highest reduction in NO<sub>x</sub> was attained with blended fuel containing 75 ppm of CQDs and 10&#37; water content, which was around 158&#37; more effective than diesel but only about 115&#37; more effective than non-CQDs biodiesel. The greatest improvement in brake thermal efficiency was observed for the fuel sample containing 5&#37; water and 75 ppm CQDs, nearly 154&#37; compared to the biodiesel blend, but approximately 135&#37; compared to diesel.
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