This paper presents a Linear Joule Engine Generator (LJEG) powered by ammonia and hydrogen co-combustion to tackle decarbonisation in the electrification of transport propulsion systems. A dynamic model of the LJEG, which integrates mechanics, thermodynamics, and electromagnetics sub-models, as well as detailed combustion chemistry analysis for emissions, is presented. The dynamic model is integrated and validated, and the LJEG performance is optimised for improved performance and reduced emissions. At optimal conditions, the engine could generate 1.96 kWe at a thermal efficiency of 34.3% and an electrical efficiency of 91%. It is found that the electromagnetic force of the linear alternator and heat addition from the external combustor and engine valve timing have the most significant influences on performance, whereas the piston stroke has a lesser impact. The impacts of hydrogen ratio, oxygen concentration, inlet pressure, and equivalence ratio of ammonia-air on nitric oxide (NO) formation and reduction are revealed using a detailed chemical kinetic analysis. Results indicated that rich combustion and elevated pressure are beneficial for NO reduction. The rate of production analysis indicates that the equivalence ratio significantly changes the relative contribution among the critical NO formation and reduction reaction pathways.