The effects of replacing a water heater at a bottom of 700 W class SOFC system with thermoelectric generation heat exchanger (TEG-HEX) was investigated by numerical simulation. A 2205 cm3 large TEG-HEX can generate additional power of 11.5 W in the case of each TE element height = 0.9 cm and heat transfer enhance rate = 3.0. This output power corresponds to improvement of SOFC power generation efficiency by 0.756 points. Increasing TE elements height are effective to increase output power of TEG-HEX, however, this leads to substantial decrease of power density estimated on TE elements volume. Decrease in the power density leads directly to higher cost, thus we should regard the power density as guiding principle of practical design. In addition, 30 % of the downstream of the TEG-HEX generate low power, thus cutting down this wasted part leads to improved power density and cost.
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