In this paper the design and operation of the closed-cycle MHD facility is discussed and results obtained in recent experiments are presented. The main components of the facility are a compressor, recuperative heat exchanger (preheater), heater, nozzle, MHD channel with 28 pairs of thoriated tungsten electrodes, cesium condenser, and an argon cooler. The heater can supply 1.1 MW of 'thermal power to a 2.27 kg/sec gas stream. The facility has been operated at temperatures up to 2100 K with a cesium-seeded argon working fluid. At low magnetic field strengths (B = 0.2 T), the open circuit voltage, Hall voltage and short circuit current obtained are 90, 69, and 47 percent of the theoretical equilibrium values, respectively. The Hall voltage and short circuit current decrease sharply with increasing magnetic field strength, however. Comparison of this data with a wall and boundary layer leakage theory indicates that the generator has shorting paths in the Hall direction.