N26 is the SULEV version of N20.
I don't know if there's any performance differences. But my wife's E46 had a SULEV engine and it was better for several reasons. Many of the parts were stainless steel and it came with an extended 150k miles emissions warranty. Basically anything along the fuel system (Check Engine light OBD stuff) will be replaced for free by BMW.
We had a stainless steel gas tank replaced at 110k miles. It would've cost $8000 at the dealer.
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