A new system for converting combustion heat into electric power was proposed on the basis of countercurrent burner with thermoelectric element embedded in a wall separating incoming fresh mixture and combustion products. The wall serves as heat exchanger between combustion products and the fresh mixture. Numerical simulations showed that almost whole combustion heat may be transferred through the thermoelectric element in such system and the total thermal efficiency attained a value close to the conversion efficiency of the thermoelectric device itself.