A cryogenic thermoelectric generator is proposed to increase the efficiency of a vehicle propulsion system that uses liquid nitrogen as its fuel. The proposed design captures some of the heat required for vaporizing or initial heating of the liquid nitrogen to produce electricity. The thermoelectric generator uses pressurized liquid nitrogen as its cold reservoir and ambient air as the high-temperature reservoir to generate power. This study concentrated on the selection of thermoelectric materials whose properties would result in the highest efficiency over the operating temperature range and on estimating the initial size of the generator. The preliminary selection of materials is based upon their figure of merit at the operating temperatures. The results of this preliminary design investigation of the cryogenic thermoelectric generator indicate that sufficient additional energy can be used to increase overall efficiency of the thermodynamic cycle of a vehicle propulsion system.