Hello Phil,
Water-fuel emulsification technology tends to focus on reduction of emissions along with improved fuel economy.
A search in the Bunkerworld news archives has brought up articles about Japanese shipping company Nippon Yusen Kaisha (NYK). It has been running tests on water-emulsion technology jointly developed between NYK subsidiary the Monohakobi Technology Institute, Nihon Rikagaku, Daitoh Marine Engineering and Sunflame.
The Italian firm Mec System has patented a micro-emulsion technology and transferred it to the maritime field alongside Cadel Srl, RINA and Carnival Corporate Shipbuilding.
The President of Sea to Sky Pollution Solutions is due to present a paper on the Case for Emissions Reduction Through Emulsion Technology at the Sustainable Shipping Forum in Los Angeles next month (
http://www.bunkerworld.com/events/losangeles2007/) so I'm sure he has more information.