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The present invention relates to a fuel emulsification system comprising an emulsion unit for emulsifying water from a water tank with fuel from a fuel tank into emulsion fuel, a water tank connected to the emulsion unit for storing and supplying water and a fuel tank connected to an emulsion unit for storing and supplying fuel. The emulsion unit comprises a mixing chamber having a rotor and a sonicator to emulsify water and fuel into an emulsion fuel, a recirculation passage for returning excess emulsion fuel unused by the engine back into the mixing chamber and a means for feeding the emulsion fuel into an engine.
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