It makes the petrol burn.... better, for want of a better word. Its an oxidizing agent, I'm stuggling to describe it with my basic scientific knowledge, but its like putting lots of air into the engine. Lots of air + lots of petrol = big bang = power.
From what i heard it *laymans mode* gives off loads of oxygen when at very high temperature and so provides plenty of oxygen for combustion. It doesn't actually burn and isn't combustible without being mixed with fuel. Due to it's storage, it can also have a cooling effect on the engine.
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