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How the two technologies generate electricity
Thermoelectric generators convert heat directly
A TEG produces electrical energy from a temperature gradient across thermoelectric semiconductor material. The National Research Council defines the process as conversion between the hot and cold ends of a semiconductor. Because the conversion module has no moving parts, it can be attractive where compactness, quiet operation or limited service access matters. The module still needs a hot side, a cooler heat sink and effective thermal coupling to move heat through it.
Heat engines turn heat into mechanical work first
A heat engine runs a cycle using a working fluid, producing mechanical power that drives a generator. An ORC uses an organic working fluid, such as propane or toluene, rather than water; it is used in some waste-heat applications where a lower-boiling fluid is appropriate. A Stirling engine is an external-heat engine: in dish/engine solar thermal systems, the U.S. Department of Energy says, “A Stirling engine uses the heated fluid to move pistons and create mechanical power.” The crankshaft then drives a generator. DOE’s dish/engine system explainer describes this configuration.
Which is more efficient?
Heat engines can be more efficient in suitable conditions, but published figures are not a controlled, like-for-like comparison of every TEG and heat-engine design. Efficiency depends on source and sink temperatures, available heat, equipment boundary and parasitic loads; a module figure cannot be compared directly with a complete system figure.
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| Technology and figure | What the figure means |
|---|---|
| TEG: typically below 4% thermal efficiency | Historical characterization in the National Research Council’s 2015 report, based on literature it cited; not a guarantee for every material or system. National Research Council report. |
| ORC: maximum 24% efficiency | Figure in the U.S. Department of Energy’s 2015 technology assessment; not a universal result or controlled comparison against all TEG configurations. The same assessment reports more than 30% for the water-based Rankine counterpart it discusses. DOE assessment. |
TEG system performance also depends on the thermoelectric material, temperature difference, thermal contacts and heat exchangers. A heat engine’s net performance depends on its cycle, temperature limits, heat rejection and auxiliary loads such as pumps or fans. For a meaningful comparison, evaluate the same source and sink temperatures, thermal input, electrical scale and duty cycle, then compare net electrical output rather than a component’s headline efficiency.
What do the cost figures show?
The DOE’s 2015 assessment estimated ORC system costs at $2–$3 per watt and steam Rankine system costs at $1.10–$1.40 per watt. Those are historical assessment estimates, not current installed quotes, and they do not establish a comparable TEG price. Cost per watt also depends on what equipment and installation are included, so figures with different system boundaries should not be treated as turnkey prices.
A TEG’s low mechanical complexity can be valuable, but low conversion efficiency may mean more heat-transfer area and careful thermal integration to obtain useful output. An ORC or other heat engine adds working-fluid equipment, heat exchangers, mechanical components and balance-of-plant needs. Project economics depend on scale, annual operating hours, site conditions and service requirements. Compare current installed cost, expected net output and operating life for the actual application rather than inferring a winner from old per-watt estimates.
When does each technology make sense?
Consider a TEG for small or difficult-to-service loads
- Power needs are modest or distributed, and a compact solid-state conversion module is useful.
- The heat source is available at a small or remote site where maintenance access is difficult.
- Quiet operation or avoiding moving parts is more important than maximizing conversion efficiency.
- The available temperature difference and heat flow can support the desired output after accounting for heat-transfer hardware.
DOE’s National Energy Technology Laboratory describes a 1 kW-class TEG program for high-grade automotive exhaust heat. That is a development use case, not proof that a 1 kW system is appropriate or commercially available for every vehicle or exhaust stream. NETL’s Methane Mitigation Thermoelectric Generator project page provides the program context.
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Consider an ORC for a facility-scale waste-heat project
- A sustained heat source and project scale can support a working-fluid cycle, heat exchangers and auxiliary equipment.
- The installation can accommodate balance-of-plant equipment and the maintenance it requires.
- A site assessment indicates that net output and operating hours justify the installed cost.
ORC is a documented option for lower-temperature waste-heat power, but there is no single temperature threshold in the cited evidence at which it automatically beats a TEG. The answer depends on the source and sink conditions, available thermal power, system integration and economics.
Consider a Stirling engine for suitable external-heat systems
Stirling engines are used in dish/engine concentrating solar power systems, where an external heat source heats the engine’s working fluid. Their pistons and crankshaft convert that heat into mechanical power for a generator. This is a distinct heat-engine application, not an indication that Stirling systems suit every waste-heat installation. DOE’s dish/engine overview explains the arrangement.
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How to make a fair site comparison
- Define the heat source and sink. Record source temperature and stability, heat-sink temperature and usable temperature difference across expected operating conditions.
- Quantify available heat and required electricity. Establish thermal power available and the desired electrical output; do not assume all source heat can be captured.
- Compare net system output. Include pumps, fans, controls and other parasitic loads, and use the same system boundary for each option.
- Build the operating case. Use expected annual operating hours, installed cost, maintenance access, footprint, noise and expected service life to assess payback or levelized cost.
- Check project-specific assumptions. For a facility-scale ORC, obtain an engineering assessment and current vendor quotations; for a TEG, confirm output against the actual hot- and cold-side conditions rather than relying on a module rating alone.
A 2015 National Research Council report also describes a historical Ford vehicle demonstration: approximately 450 W at 65 mph with exhaust at about 250°C, and more than 700 W at about 500°C. These are outputs from that demonstration under its stated conditions, not a guarantee for a present-day commercial vehicle system. The report’s vehicle technology discussion gives the context.
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