ORIGINAL:
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The Swiss Dyno and Etha were available around 1938 and would fly model airplanes. I do not know who developed these ingines. Also I wonder if someone may have built one earlier for maybe a boat?
It is too early.. The Dyno diesel came first time in 1942 and was invented by Klemenz-Schenk, Alfligen in Switzerland. Etha came later..
The first fuel for Dyno diesel engine was made of:
16% Ether
25% Turpentine
9% Lubricating oil
25% Petrol
25% Medicated paraffin oil
Jens Eirik