This Small Business Innovation Research (SBIR) Phase I project proposes to create a novel low-cost micro-turbine engine that will revolutionize small-scale distributed power generation. The end goal is to install the generator onto residential HVAC systems to provide combined heat and power (CHP) for single-family homes. The engine will generate 1kW of electricity and the excess heat will be used for space heating and water heating, resulting in more efficient use of thermal energy. Currently there are no commercially available low-cost micro-turbine CHP systems that operate in this power range. The objective of this Phase I work is to demonstrate the feasibility of building a low-cost yet efficient micro-turbine by combining innovative morphologies with conventional materials and manufacturing technologies.<br/>The broader/commercial impacts of this research is to enable distributed generation at unprecedented power density and cost effectiveness, making it accessible for residential consumers. Customer adoption of combined heat and power (CHP) technologies is very low due to the lack of systems with a reasonable payback period. CHP systems powered by the proposed micro-turbine have a 75% reduction in upfront cost and 90% reduction in volume compared to existing systems. A small, cost effective and efficient CHP system will help families reduce monthly utility bills, provide peak hour load-leveling for power grid utilities, and reduce annual CO2 emissions by 1 ton per household. The proposed technology has significant market potential; beyond a multi-billion dollar residential CHP market with an enormous customer base are other applications in distributed generation.