Internal combustion engines are fundamentally heat engines. They convert chemical potential energy into thermal energy, and then into kinetic work. According to the laws of thermodynamics, they can never be 100% efficient; much energy is always lost as waste heat.
Key Variables:
- Compression Ratio (r): The ratio of the cylinder's volume at the bottom of the stroke vs the top. Higher ratios extract more work from the expanding gases, increasing efficiency via the ideal Otto cycle efficiency equation: η = 1 - 1 / rγ-1
- Engine Knock: If the compression ratio is too high for a given fuel, the heat of compression causes the fuel to auto-ignite prematurely (detonation). This causes severe damage and a massive drop in power. Different fuels have different knock resistance (octane ratings).
- Air-Fuel Ratio (AFR): The mass ratio of air to fuel. Running 'Rich' (more fuel) can provide maximum power but wastes unburnt fuel (lower efficiency). Running slightly 'Lean' (more air) can improve efficiency but may cause the engine to run too hot.
The Engineering Challenge: Engineers must balance these constraints. You want the highest possible compression ratio for efficiency, but you are constrained by the physical properties (knock limit) of the fuel.