Biodiesel is one of the more promising alternative clean fuels to fossil fuel, which can reduce the emissions of fossil fuel burning, and possibly resolve the energy crisis caused by the exhaustion of petroleum resources in the near future. The burning of biodiesel emits much less gaseous emissions and particulate matter primarily because of its dominant combustion efficiency. However, the high oxygen content in biodiesel not only promotes the burning process but also enhances NOx formation when biodiesel is used as fuel. Biodiesel emulsion and the additive of NOx-inhibitor agent are considered to reduce levels of NOx emissions in this experimental study. The biodiesel was produced by transesterification reaction accompanied with peroxidation process. A three-phase biodiesel emulsion of oil-in water drops-in oil (O/W/O) and an O/W/O biodiesel emulsion containing aqueous ammonia were prepared afterwards, The effect of the existence of NOx-inhibitor agent on the fuel properties and the emulsion characteristics of the O/W/O biodiesel emulsions were investigated. The experimental results show that the burning of the O/W/O biodiesel emulsion and the O/W/O biodiesel emulsion containing aqueous ammonia had larger fraction of fuel burnt and thus larger heat release than the neat biodiesel if water content is not considered for the calculation of heating value. The addition of aqueous ammonia within the dispersed phase of the O/W/O biodiesel emulsion appeared to deteriorate the emulsification characteristics. A smaller quantity of emulsion and greater kinematic viscosity were formed while a larger carbon residue and actual reaction-heat release also appeared for this O/W/O biodiesel emulsion. Aqueous ammonia in the O/W/O biodiesel emulsion produces a higher pH value as well. In addition, the number as well as the volumetric fraction of the dispersed water droplets is reduced for the O/W/O biodiesel emulsion that contains aqueous ammonia. (C) 2008 Elsevier B.V. All rights reserved.