A low or no pollution engine is provided for delivering power for vehicles or other power applications. The engine has an air inlet which collects air from a surrounding environment. At least a portion of the nitrogen in the air is removed. The remaining gas is primarily oxygen, which is then routed to a gas generator. The gas generator has inputs for the oxygen and a hydrocarbon fuel. The fuel and oxygen are combusted within the gas generator, forming water and carbon dioxide. The combustion products are then expanded through a power generating device, such as a turbine or piston expander to deliver output power for operation of a vehicle or other power uses. The combustion products are then passed through a condenser where the steam is condensed and the carbon dioxide is collected or discharged. A portion of the water is routed back to the gas generator. The carbon dioxide is compressed and delivered to a terrestrial formation from which return of the CO2 into the atmosphere is inhibited.