The availability of the thermal energy has been deeply recognized recently to encourage the cascade usage of thermal energy from combustion. Within the framework, a 1 kW class Stirling engine based cogeneration system has been proposed for a unit of a distributed energy system. The capacity has been designed to be adequate for the domestic usage, which requires high compactness as well as low emission and noise. To develop a highly efficient system with satisfying these requirements, a premixed slot type short flame burner has been proposed and a series of numerical simulation has been performed to establish a design tool for the combustion chamber. The thermal radiation model has been found to highly affect the computational results and a proper resolution to analyze the heat transfer characteristics of the high temperature heat exchanger. Finally, the combustion characteristics of the premixed flame with the metal fiber type burner has been studied.