Since its invention the oxy hydrogen gas has been used for many purposes like welding, lighting etc. In the recent past this gas has been experimented as a fuel additive in both SI as well as CI engines to improve the performance as well as emission parameters. Number of oxy hydrogen gasgenerators are designed and tested till today. This paper describes a new all metal low resistanceoxy hydrogen gas generator which will be optimized in the later progress of the research work for maximum oxy hydrogen gas generation. In the later part of this paper a newly fabricated single cylinder twin spark variable compression ratio engine is discussed which will be further used for the testing of the oxy hydrogen gas from the optimized oxy hydrogen gas generator in blend with the hydrocarbon fuels at different compression ratios.