The article describes a compression-ignition engine working with a dual-fuel system installed in diesel locomotive TEP70 BS. The model of the locomotive engine has been created applying AVL BOOST and Diesel RK software and engine performance simulations. Combustion characteristics have been identified employing the mixtures of different fuels. The paper compares ecological (CO2, NOx, PM) and energy (in-cylinder pressure, temperature and the rate of heat release (ROHR)) indicators of a diesel and fuel mixtures-driven locomotive. The performed simulation has shown that different fuel proportions increased methane content and decreased diesel content in the fuel mixture, as well as causing higher in-cylinder pressure and ROHR; however, in-cylinder temperature dropped. CO2, NOx and PM emissions decrease in all cases thus raising methane and reducing diesel content in the fuel mixture.