Heat is applied to a hot-end chamber, which contains a heat source such as a flame or hot air.

The heat
source transfers heat to the working gas, which causes it to expand and move towards the cold-end
chamber. As the working gas moves towards the cold-end chamber, it passes through a displacer, which
is a lightweight piston-like device that uses displacement to move the gas back and forth between the
hot-end and cold-end chambers. The displacer's movement from one side of the chamber pushes the
working gas to the other side of the chamber and causes it to either be cooled or heated. As the working
gas moves towards the cold-end chamber, it also moves a power piston that is connected to a crankshaft.
The crankshaft then converts the linear motion of the piston into rotational motion that can be used to
do work. The crankshaft of the power piston is connected to the flywheel at an angle 90 o to where the
displacer is connected to the flywheel. Due to the 90 o angle of the crankshaft on the power piston and
the crankshaft on the displacer, when the power piston moves up, it causes the displacer to move
towards the hot end chamber. This pushes the working gas towards the cold-end chamber by
displacement. The cold-end chamber causes the gas to contract and decrease the pressure in the gas.
This causes the power piston to move downward. The power piston moving downward causes the
displacer to move towards the cold end chamber. This will push the working gas to the hot end chamber
and resets the cycle.

Overall, the displacer-type, gamma Stirling engine works by using the expansion and contraction due to
temperature changes of a working gas to drive a power piston and generate mechanical energy. The
engine operates on a closed cycle, with no internal combustion, and can be powered by a wide range of
heat sources.