Abstract: The specification discloses a method and apparatus for generating electricity which substantially eliminates the problem of acid rain as well as the problems associated with nuclear and hydroelectric power. Scrap aluminum and ferric oxide are reacted in a combustion chamber. The heat of the reaction as well as the heat of molten iron flowing from the combustion chamber heats boilers, the generated gas of which is used to drive electric generators. The iron is reoxidized, with the heat of reoxidation also being used to heat boilers which drive generators. The reoxidized iron is then recycled into the combustion chamber.