MHD power generation directly converts heat into electricity using magnetohydrodynamics. Hot ionized gas is passed through a magnetic field, inducing a current due to the Lorentz force. There are two main types - open cycle systems that exhaust combustion products and closed cycle systems that recycle the working fluid like seeded inert gas or liquid metal. While more efficient than conventional power, MHD systems require very high temperatures and large magnets, making them expensive. They have applications in spacecraft, experiments, and defense.