The U.S. Department of Energy's (DOE) Co-Optimization of Fuels & Engines (Co-Optima) initiative is accelerating the introduction of affordable, scalable, and sustainable fuels and high-efficiency, low-emission engines with a first-of-its-kind effort to simultaneously tackle fuel and engine research and development (R&D). This report summarizes accomplishments in the first year of the project. Co-Optima is conducting concurrent research to identify the fuel properties and engine design characteristics needed to maximize vehicle performance and affordability, while deeply cutting emissions. Nine national laboratories - the National Renewable Energy Laboratory and Argonne, Idaho, Lawrence Berkeley, Lawrence Livermore, Los Alamos, Oak Ridge, Pacific Northwest, and Sandia National Laboratories - are collaborating with industry and academia on this groundbreaking research.