Under Phase II SBIR funding from DARPA and NASA MDC is developing a micro-turboaltenator, which drives a light weight, permanent magnet generator developed by a 3rd party collaborator to provide electrical output. At the core of the device design is unique IP, where the power-turbine driving the by-pass flow is located in front of the combustor rather than at the engine exhaust. Using a compact recuperator to recover heat from the exhaust decreases the fuel consumption to 1 lb/hr/kW, while still maintaining a power-to-weight ratio of 1.7 kW/lb. This is six times the specific power, or 12-15 times the energy density, of lithium polymer batteries. Electrical output ranges from under 10 kW to over 100 kW. The micro-turboaltenator is ideally suited to the next generation of hybrid light-sports aircraft and UAVs, as well as hybrid road vehicles and stationary power generation.