This report provides a literature review on the research and development work contributing to the current status of nanofluid technology for heat transfer applications in industrial processes. Nanofluid technology is a relatively new field, and as such, the supporting studies are not extensive. Specifically, the experimental results and theoretical predictions regarding the enhancement of the thermal conductivity and convective heat transfer of nanofluids relative to conventional heat transfer fluids were reviewed and assessments were made of the current status to derive future research and development directions for industrial applications. Pertinent parameters were considered individually as to the current state of knowledge. Experimental results from multiple research groups were cast into a consistent parameter, 'the enhancement ratio,' to facilitate comparisons of data among research groups and identification of thermal property and heat transfer trends. The current state of knowledge is presented as well as areas where the data are currently inconclusive or conflicting. Heat transfer enhancement for available nanoparticles is known to be in the 15-40% range, with a few situations resulting in orders of magnitude enhancement. The direction of future research should be to substantiate the lower range results and to continue investigations into the higher enhancements. The focus ofmore » this study is primarily transportation applications. However, some attention is given to other industrial applications of nanofluid heat transfer. Also discussed are barriers to be addressed prior to commercialization of nanofluids.« less