As the world is hard pressed with the energy and fuel crises, compounded by pollution of all kinds, any technologies that bring out the solutions to this problem is considered as a bounty. In one of such new technologies, is the development of a new engine called as compressed air engine which does not require any of the known fuels like diesel, petrol, CNG, LPG, hydrogen etc. this works using only compressed air. This replaces all types of to-date known fuels and also permanently solves the problems of pollution as its exhaust is clean and cool measured practically as low as 5ºC. A proto type, a horizontal, single cylinder low speed engine was modified to run on compressed air. Since this engine runs only on high pressure compressed air, the exhaust of which is undoubtedly only air, making it a zero pollution engine. No heat is generated because there is no combustion of fuel, hence this engine needs no cooling system and it result in reduced cost, weight, volume and vibration. Early cost analysis shows that it’s very cost effective and the operational cost is ten times less than that of petrol or diesel. Experimental analysis were carried out on this modified engine to find out its performance characteristics like brake power, mechanical efficiency, overall efficiency, air to Air ratio, volumetric efficiency, cost analysis etc. Though the efficiencies were low as the frictional forces were high for the proto designed engine, however the concept can be applied on a professionally designed engine to improve its performance. Introduction Gasoline is already the fuel of past and also main reason behind global warming. But here we have the solution. A compressed air vehicle (CAV) is powered by an air engine, using compressed air, which is stored in a tank. Instead of mixing fuel with air and burning it in the engine to drive pistons with hot expanding gases, compressed-air vehicles use the expansion of compressed air to drive their pistons. One manufacturer claims to have designed an engine that is 90 percent efficient.