A system for recovering electrical energy and water from exhaust gasses. The system includes a thermoelectric generator to produce electricity from the waste heat of the exhaust gasses of internal combustion engines and the like. The exhaust is cooled by the thermoelectric generator, air cycle machine and other heat absorbing devise which, through work, reduce the exhaust gas temperature and promote condensation of the water.

A turboprop engine assembly for an aircraft, including an internal combustion engine having a liquid coolant system, an air duct in fluid communication with an environment of the aircraft, a heat exchanger received within the air duct having coolant passages in fluid communication with the liquid coolant system and air passages air passages in fluid communication with the air duct, and an exhaust duct in fluid communication with an exhaust of the internal combustion engine. The exhaust duct has an outlet positioned within the air duct downstream of the heat exchanger and upstream of an outlet of the air duct, the outlet of the exhaust duct spaced inwardly from a peripheral wall of the air duct. In use, a flow of cooling air surrounds a flow of exhaust gases. A method of discharging air and exhaust gases in an turboprop engine assembly having an internal combustion engine is also discussed.