The efficiency of the direct energy conversion in MHD power generation increases with the magnetic field strength and the plasma conductivity, which depends directly on the plasma temperature, and more precisely on the electron temperature. As very hot plasmas can only be used in pulsed MHD generators (for example using shock tubes) due to the fast thermal material erosion, it was envisaged to use nonthermal plasmas as working fluids in steady MHD generators, where only free electrons are heated a lot (10,000–20,000 kelvins) while the main gas (neutral atoms and ions) remains at a much lower temperature, typically 2500 kelvins. The goal was to preserve the materials of the generator (walls and electrodes) while improving the limited conductivity of such poor conductors to the same level as a plasma in thermodynamic equilibrium; i.e. completely heated to more than 10,000 kelvins, a temperature that no material could stand.
But Evgeny Velikhov first discovered theoretically in 1962 and experimentally in 1963 that an ionization instability, later called the Velikhov instability or electrothermal instability, quickly arises in any MHD converter using magnetized nonthermal plasmas with hot electrons, when a critical Hall parameter is reached, hence depending on the degree of ionization and the magnetic field. Such an instability greatly degrades the performance of nonequilibrium MHD generators. The prospects about this technology, which initially predicted awesome efficiencies, crippled MHD programs all over the world as no solution to mitigate the instability was found at that time.
Consequently, without implementing solutions to master the electrothermal instability, practical MHD generators had to limit the Hall parameter or use moderately heated thermal plasmas instead of cold plasmas with hot electrons, which severely lowers efficiency.
As of 1994, the 22% efficiency record for closed-cycle disc MHD generators was held by Tokyo Technical Institute. The peak enthalpy extraction in these experiments reached 30.2%. Typical open-cycle Hall & duct coal MHD generators are lower, near 17%. These efficiencies make MHD unattractive, by itself, for utility power generation, since conventional Rankine cycle power plants easily reach 40%.
However, the exhaust of an MHD generator burning fossil fuel is almost as hot as a flame. By routing its exhaust gases into a heat exchanger for a turbine Brayton cycle or steam generator Rankine cycle, MHD can convert fossil fuels into electricity with an estimated efficiency of up to 60 percent, compared to the 40 percent of a typical coal plant.
A magnetohydrodynamic generator might also be the first stage of a gas core reactor.