Historically, the opposed-piston two-stroke diesel engine set combined records for fuel efficiency and power density that have yet to be met by any other engine type. In the latter half of the twentieth century, the advent of modern emissions regulations stopped the wide-spread development of two-stroke engine for on-highway use. At Achates Power, modern analytical tools, materials, and engineering methods have been applied to the development process of an opposed-piston two-stroke engine, resulting in an engine design that has demonstrated a 15.5% fuel consumption improvement compared to a state-of-the-art 2010 medium-duty diesel engine at similar engine-out emissions levels. Furthermore, oil consumption has been measured to be less than 0.1% of fuel over the majority of the operating range. Additional benefits of the opposed-piston two-stroke diesel engine over a conventional four-stroke design are a reduced parts count and lower cost.