Fast depletion of fossil fuels is demanding an urgent need to carry out research work to find out the viable alternative fuels for meeting sustainable energy demand with minimum environmental impact. in the future, our energy systems will need to be renewable and sustainable, efficient and cost-effective, convenient and safe. The technology for producing hydrogen from a variety of resources, including renewable, is evolving and that will make hydrogen energy system as cost-effective. Hydrogen safety concerns are not the cause for fear but they simply are different than those we are accustomed to with gasoline, diesel and other fossil fuels. For the time being full substitution of diesel with hydrogen is not convenient but use of hydrogen in a diesel engine in dual fuel mode is possible. So Hydrogen has been proposed as the perfect fuel for this future energy system. The experiment is conducted using diesel-hydrogen blend. A timed manifold induction system which is electronically controlled has been developed to deliver hydrogen on to the intake manifold. The solenoid valve is activated by the new technique of taking signal from the rocker arm of the engine instead of cam actuation mechanism. In the present investigation hydrogen-enriched air has been used in a diesel engine with hydrogen flow rate at 0.15 kg/h. As diesel is substituted and hydrogen is inducted, the NOx emission is increased. In order to reduce NOx emission an EGR system has been developed. In the EGR system a lightweight EGR cooler has been used instead of bulky heat exchanger. In this experiment performance parameters such as brake thermal efficiency, volumetric efficiency, BSEC are determined and emissions such as oxides of nitrogen, carbon dioxide, carbon monoxide, hydrocarbon, smoke and exhaust gas temperature are measured. Dual fuel operation with hydrogen induction coupled with exhaust gas recirculation results in lowered emission level and improved performance level compared to the case of neat diesel operation. (C) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.