This project studied a new generator utilizing the Seebeck effect. The major objective of this study was to prove the baseline concept through experimental studies. The important results from this study included design and fabrication of a laboratory scale generating system. The generating capacity of the TE-generator was 500Watt. The preliminary testing results showed the system efficiency of close to 20%. The experimental testing system has been built to include heating element, circulation pump and the instrumentation system included watt-hour meter, temperature sensor, and data acquisition system by the Hewlett-Packard 75000 Series.