Thermoelectric waste heat recovery is investigated for current thermoelectric materials with advanced heat exchangers. Numerical heat exchanger models integrated with models for Bi2Te3 thermoelectric modules are validated against experimental data from previous cross flow heat exchanger studies as well as experiments using thermoelectrics between counterflow hot water and cooling air flow channels. The models are used in optimization studies of thermoelectric waste heat recovery with air cooling in a cross flow heat exchanger. Power losses from an air fan and a fluid pump result in an optimal configuration at intermediate cooling air and hot fluid flows. Results show that heat exchangers with Bi2Te3 thermoelectrics can achieve net power densities over 40 W/l. (C) 2003 Elsevier Ltd. All rights reserved.