This paper examines the performance of a new Marnoch heat engine, which uses dry air and a pneumatic piston assembly to convert thermal energy to electricity. The system has unique capabilities of operating over temperature differentials less than 100 K. Unlike a common Stirling engine, the heat exchangers and piston assembly are not co-located, which is beneficial for positioning of heat exchangers in various configurations. This paper presents an operational laboratory-scale, proof-of-concept Marnoch heat engine (MHE), including its performance and power generation capabilities. It also presents a thermodynamic analysis of the system. Based on the MHE results, component modifications are made to improve its performance. The configuration has an efficiency of about thirty percent of a Carnot heat engine operating in the temperature range between 272 K and 372 K. Experimental data is acquired to provide verification of the predictive model, as well as demonstration of the MHE's capabilities for efficient generation of electricity from waste heat sources. (C) 2011 Elsevier Ltd. All rights reserved.