Micro combined heating and power (micro-CHP) systems are becoming more than important, and even essential, if we pretend to take full advantage of available energy. The efficiency of this kind of systems reaches 90% and important savings in energy transport processes can occur. In this research, an internal combustion engine (ICE)-based micro-CHP system was developed and tested under specific constraints. The system uses a two cylinder Otto engine as prime mover, coupled to an electrical alternator, and it uses exhaust gases and engine cooling circuit heat. The micro-CHP system was developed to match the electrical power of a typical Stirling engine (SE)-based micro-CHP unit, in order to later compare both systems’ performance under similar circumstances. Different operating modes were tested under different engine speeds, in order to find the optimum operating point. A stand-alone portable application of this system was performed using recreational sailing boats as mobile homes. Specific considerations had to be taken, related to boundary conditions with sea water, and a transient simulation was performed, considering the boat under three different European climates. Results were compared for the different locations and the performance of the equipment shown. A comparative study with the SE-based micro-CHP system performance was done, and a sensitivity analysis of the influence of the battery size was carried out under the same conditions. The SE and ICE-based proposed micro-CHP system have similar behavior, except for the differences found due to the electric/thermal power ratios in both systems. Battery bank size sensitivity analysis reflects a limit in performance improvement. This limit is caused by the uniform distribution of electrical demand profile.