Related to a post by @GA and contributed to by @AC and replied to by @JF , I thought I would post this.
Attached is a ZIP file containing 2 protocols. Both demonstrate the use of Data URLs to place images in email messages. One shows how you can use the HTML Template component in Pipeline Pilot to include arbitrary HTML in a report (email). The other protocol shows how you can use the same methodology without the HTML Template component.
You will have to configure the SMTP Mail Writer component in both protocols in order to make the examples work.
The protocols have several sticky notes by way of explanation. Please feel free to post here if you have a question.