That's where the 3 valve system works. Not just 3 valves, but 3 different ports as well.
1 intake, 2 exhaust.
One exhaust valve opens on the "fire" exhaust stroke, and vents out the tailpipe.
The other exhaust valve opens on the steam exhaust stroke, and with a second set of exhaust pipes, routs to a condenser in place of the radiator (probably through a filter before that), then to the water storage, replacing the coolant overflow, and then through a pump, another filter, and injected into the engine again.
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