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Ethanol and vegetable oils played an important role for more than 70 years in many countries all over the world. Since 19th century, ethanol has been used as fuel for Compression Ignition (CI) engines. By fermenting and distilling the biomasses, ethanol can be obtained and hence it can be considered as a renewable fuel. One way of increasing the efficiency of the ethanol fuel CI engine is to use it as a Low Heat Rejection Engine (LHR). In LHR engine, the thermal efficiency of the CI engine can be increased by reducing the heat loss to the surroundings through coolant and exhaust gas. The heat can be transferred from the combustion chamber to the piston, cylinder wall and finally to the cooling water. The heat transfer can be minimized by insulating the piston and cylinder wall and coating the piston and the cylinder wall with ceramics, which can withstand high thermal stresses. The coating materials have low …