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You can use heat in a circuit that is designed to take advantage of the Seeback effect - one of the two (or three, depending on who you ask) thermoelectric effects. It's the only suitable method for capturing heat and turning it into electricity in such a small device. It's terribly inefficient and I can't see it actually reaching the claimed power levels.
Also one of their little flash videos shows a normal spark plug as not going off at the right time... that seems to be completely trash since you just adjust the timing from top dead center to achieve the best ignition place, regardless of spark lag, and all modern cars do this with a computer as you drive.
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