combustion occurs externally; energy coupled to working fluid by heat transfer device Open cycle: working fluid discharged to atmosphere; e.g. all ICE Close cycle: working fluid recycled through engine; e.g. steam engine with condenser ICE Size: displacement volume 1cc to 1m3 per cylinder; comment on why it is difficult to build engine outside this range. Power: 10 W to 108 W per cylinder Applications: Automotive, marine, power generation, mechanical devic