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Thermoelectric generator has very quickly become a hot research topic in the last five years because its broad application area and very attractive features such as no moving parts, low maintenance, variety of thermoelectric materials that total together cover a wide temperature range. The biggest disadvantage of the thermoelectric generator is its low conversion efficiency. So that when design and manufacture a thermoelectric generator for exhaust waste heat recovery from an automotive engine, the benefit of fuel consumption from applying a thermoelectric generator would be very sensitive to the weight, the dimensions, the cost and the practical conversion efficiency. Additionally, the exhaust gas conditions vary with the change of engine operating point. This creates a big challenge for the design of the hot side heat exchanger in terms of optimizing the electrical output of the thermoelectric generator during an engine transient cycle.

Thermoelectric generator (TEG) has received more and more attention in its application in the harvesting of waste thermal energy in automotive engines. Even though the commercial Bismuth Telluride thermoelectric material only have 5% efficiency and 250°C hot side temperature limit, it is possible to generate peak 1kW electrical energy from a heavy-duty engine. If being equipped with 500W TEG, a passenger car has potential to save more than 2% fuel consumption and hence CO2 emission reduction. TEG has advantages of compact and motionless parts over other thermal harvest technologies such as Organic Rankine Cycle (ORC) and Turbo-Compound (TC). Intense research works are being carried on improving the thermal efficiency of the thermoelectric materials and increasing the hot side temperature limit. Future thermoelectric modules are expected to have 10% to 20% efficiency and over 500°C hot side temperature limit.