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I personally use steam because it gives so much engine power and electricity but if I don't need that much power fuel is probably better because I believe it uses less materials total. also, you don't have to carry the refinery with you. even if you do you can just make a super tanky brick of metal on wheels with all your explosives in it (most of your ammo and/or refineries and fuel storage)
what I like doing for something like that is having a super tanky part (more blocks away from the more important stuff) and just spam a few heat decoys there to mess with missiles and the AI card that aims for hot things.
there is no AI card that aims for hot things, just IR missiles
Steam also needs a short period of time to warm up and build pressure before it operates at its peak performance. The consumption of material is constant throughout the operation, whether the engine runs at its maximum pressure and heat built up or its just starting, it burns material at the same rate.
Basically its complex and delicate but it has an extremely high power density.