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This leads to a loss of efficiency due to a back pressure in the cylinder as the gas cools.
CO2 dissolves in water to form Carbonic Acid.A simple raw water cooled engine mixes the exhaust with the cooling water - there isn't a 'jacket'.
There may have been some confusion.
How much (purified) water would this turbosteamer need to carry to accompany a tankful of petrol, I wonder?
I'm pretty sure BMW's design condenses & recirculates the water.
Why not just drive a turbine with the exhaust gases.