  A recently introduced particle-based model for fluid dynamics with continuous
velocities is generalized to model immiscible binary mixtures. Excluded volume
interactions between the two components are modeled by stochastic multiparticle
collisions which depend on the local velocities and densities. Momentum and
energy are conserved locally, and entropically driven phase separation occurs
for high collision rates. An explicit expression for the equation of state is
derived, and the concentration dependence of the bulk free energy is shown to
be the same as that of the Widom-Rowlinson model. Analytic results for the
phase diagram are in excellent agreement with simulation data. Results for the
line tension obtained from the analysis of the capillary wave spectrum of a
droplet agree with measurements based on the Laplace's equation. The
introduction of "amphiphilic" dimers makes it possible to model the phase
behavior and dynamics of ternary surfactant mixtures.
