Gas Technology Institute (GTI) will design, test, and demonstrate a modular heat engine system for clean and efficient conversion of natural gas to power, hydrogen, and carbon dioxide. The concept centers on clean power generation using hydrogen produced from GTI’s patented compact hydrogen generator (CHG), combined with an existing gas turbine modified for hydrogen combustion or with an advanced hydrogen turbine. During Phase I, detailed thermodynamic cycle analyses will be performed using commercially available modeling tools; trade studies will be conducted at the component and subsystem levels to define an optimized modular system that may be demonstrated to produce power with load-following capability; and technology gaps will be identified through consultations with system end-users and turbine OEMs. Using the CHG technology, GTI predicts a greater than 15 percent reduction in hydrogen cost. The modular systems can be used for distributed power generation and may be grouped together for added capacity. The system is sized for natural gas compression stations, enabling more efficient and improved environmental performance where the CO₂ may be reused locally for enhanced oil and gas recovery.