efficiency of the latest gas engine was a lower heating value (LHV) of almost 50 %. This is because of the application of technologies such as lean burn and mirror cycles. [5] Even though cogeneration has a high total energy-utilization efficiency, the practical application of conventional cogeneration is suitable for cases that require a relatively large amount of heat because the proportion of heat obtained from cogeneration is still large. In general, electricity is a preferred product than thermal energy. Therefore, it is important to increase the thermal efficiency for electrical power generation to accelerate the adoption of cogeneration technology. 2 Technological issues affecting natural gas engines 2.1 Thermal efficiency of gas engines and future direction of technological development The improvements in the thermal efficiency of gas engines are important for the promotion of gas engine-based cogeneration installation. Obviously, the maximum thermal efficiency is limited by the Carnot cycle according to thermodynamics. The actual gas engine is an irreversible engine, and the Otto cycle model, which is closer to a real engine, is used to understand its fundamental behavior. In the Otto cycle, fuel is supposed to burn at the location of the piston's top position, which corresponds to the maximum compression. On the contrary, it is supposed to be exhausted at the bottom piston position, which corresponds to the maximum expansion. The thermal efficiency of the Otto cycle th is expressed in the following equation: