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Theory says that such energy conversion can never exceed a specific value called the Carnot Limit, based on a 19th-century formula for determining the maximum efficiency that any device can achieve in converting heat into work. But current commercial thermoelectric devices only achieve about one-tenth of that limit, Hagelstein says. In experiments involving a different new technology, thermal diodes, Hagelstein worked with Yan Kucherov, now a consultant for the Naval Research Laboratory, and coworkers to demonstrate efficiency as high as 40 percent of the Carnot Limit. Moreover, the calculations show that this new kind of system could ultimately reach as much as 90 percent of that ceiling.
Turning heat to electricity
http://web.mit.edu/newsoffice/2009/thermoelectric.html