A computer model was built and a theoretical analysis was performed to predict the behavior of a system containing Homogenous charge compression ignition (HCCI) engine and a methanol reformer. The reformer utilizes the waste heat of the exhaust gases to sustain the two subsequent processes: dehydration of methanol to dimethyl ether (DME) and water, and methanol steam reforming (SRM) where methanol and water react to mainly hydrogen, CO and CO2. Eventually, a gaseous mixture of DME, H2, CO, CO2, water (reused) and some other species is created in these processes. This mixture is used for the engine feeding. By adding water to the methanol and fixing the vaporized fuel's temperature, it is possible to manage the kinetics of chemical processes, and thus to control the products’ composition. This allows controlling the HCCI combustion. By a magnification of H2/DME ratio the ignition delay is increased and so it is possible to synchronize the ignition timing and also to control combustion duration. The simulation results prove feasibility of the suggested approach and a possibility of achieving substantially higher energy efficiency together with zero-impact NOx emissions in a wide range of engine operating modes.