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Yes, a Steam engine has at least two types of fuel. A burning fuel and transfer fuel. Some even have 3 types, a pilot, a burner, and a transfer fuel.
However, for the most part a Steam engine will use up water much quicker than its burner fuel. This is much more important in a car than a train, as you carry less water.
Steam engines (In cars) are measured by how far they can go on a tank of water, not on a tank of kerosene or gasoline. A typical Stanly Steamer can go about 10 miles per water gallon, where as the burner fuel would easily last around 40 miles per gallon. (Really depends on the fuel used.) Likewise, the hotter days you'd get less miles per water gallon.
So the limitations for a Steam engine is the water, not the burner fuel, thus why we use water as the fuel instead of "coal." I also suggested kerosene, but the artist chose water after I linked him to a number of Steam vehicle informational videos.
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