Abstract: A hydrogen-oxygen fueled internal combustion engine is described herein, which utilizes an inert gas, such as argon, as a working fluid to increase the efficiency of the engine, eliminate pollution, and facilitate operation of a closed cycle energy system. In a system where sunlight or other intermittent energy source is available to separate hydrogen and oxygen from water, the oxygen and inert gas are taken into a diesel engine into which hydrogen is injected and ignited. The exhaust is cooled so that it contains only water and the inert gas. The inert gas in the exhaust is returned to the engine for use with fresh oxygen, while the water in the exhaust is returned to the intermittent energy source for reconversion to hydrogen and oxygen.