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"Maybe you can recover enough energy from your exhaust to generate pressurized steam and run a turbine, which in turn runs an alternator?"
Yes, like i've been saying, that IS the whole idea. Through natural convection the liquid will flow to spin a turbine and back into the heat exchanger.
And you ideally want the lowest possible exhaust velocity after this exchanger, because thats how you know you are extracting energy from the system (in the form of heat)- so low exhaust velocity would be a good thing not a bad thing...
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