One possibility for onboard electricity generation in a hybrid vehicle is a free piston engine incorporating an integrated linear generator. This paper presents the modelling and development of the linear engine generator concept, where a linear electrical machine is physically integrated within a free piston engine. Details and results of a multi-physics simulation of this concept are given, with a focus on the design of the electric machine. It is shown that a short translator design can result in the highest power density. This also gives the opportunity for integrating the electric machine physically within the compressor. Details of a prototype demonstrator of the resulting generator-compressor are given.