The Diesel engine was invented by Rudolph Diesel in the 1890's.
It is very similar to the conventional gasoline engine, with the
difference that the fuel is ignited by its contact with the compressed
hot air. In a conventional gasoline engine, the air fuel mixture is
compressed as the piston moves up, then the fuel is ignited by
the spark plug. If the compression ratio of a spark ignited (SI)
engine is too high, the fuel auto ignites before it is supposed, this
is called engine knock and is not desired. In a diesel engine, only
air is compressed as the piston moves up, at the instant when
combustion is desired fuel is injected into the chamber and is
instantly ignited by the hot compressed air (see movie).
The thermal efficiency of an IC engine depends mostly on the
compression ratio. As explained above, the compression ratio of a
spark ignited engine is bounded by the auto ignition of the fuel. In a
Diesel engine, the only limit to the compression ratio is the
mechanical strength of the engine, for this reason Diesel engines run
at higher compression ratios and higher efficiencies than the
conventional gasoline engines.