Ah yes, the old burning water thing, aka the urban myth that wouldn't die. It even spills over into an almost fanatical belief that hydrogen fuel is the savation of the planet among certain groups, and of course this brown's gas nonsense. The hilarious part is there is a small (a very tiny) grain of truth like in most urban legends.
Once upon a time in America, when horses were being replaced by tractors all across the country, the petroleum companies had a little problem. The infrastructure to refine and deliver all that gasoline the tractors needed didn't yet exist. They could produce and deliver plenty of kerosene, as that was already in use for oil lamps, home heating, cooking and such. Problem solved.
Now with some modification an internal combustion engine will run fine on kerosene. You have to design it to have the carburator and intake manifold at a higher temperature so the kerosene will volitalise. And you have to find a way to raise the octane rating of kerosene, which is pretty bad.
So, a water injection system was devised, with its own tank and injection pump. For something like every 15 or 20 gallon of kerosene you 'burned' a gallon or so of water. Smoothed the engines out nicely and also eliminated carbon buildup.
Yes, there were engines that 'burned' water, but not as fuel.