An internal combustion engine that includes a block, a cylinder head having an intake valve port and exhaust valve port formed therein, a piston, and a combustion chamber defined by the block, the piston, and the head. At least one thermoelectric device is positioned within either or both the intake valve port and the exhaust valve port. Each of the valves is configured to move within a respective intake and exhaust valve port thereby causing said valves to engage the thermoelectric devices resulting in heat transfer from the valves to the thermoelectric devices. The intake valve port and exhaust valve port are configured to fluidly direct intake air and exhaust gas, respectively, into the combustion chamber and the thermoelectric device is positioned within the intake valve port, and exhaust valve port, such that the thermoelectric device is in contact with the intake air and exhaust gas.