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"Generators refine fuel to power engines. Interact with them once they are attached to a ship to place fuel inside."
Generators are components that can be placed on a ship while it is docked at a shipyard. They cannot be held in your inventory and must be picked up using your gauntlet when within the bubble of a shipyard that you have access to. The generator is a schematic that you have to unlock using 250 knowledge points. You get it when unlocking the very first engine schematic.
The Power Generator functions as a fuel tank and is required to power your ship's engines. It has a capacity of 100 units of fuel. If you place multiple generators on a ship then they act as one big tank. Meaning that if you were to build 3 generators on a ship then you would have a maximum fuel capacity of 300 units.
For refueling you can use any of the generators you might have built on your ship since they are all linked together.
The amount of fuel left inside the generator can be seen via the fuel gauge.
Crafting Page: Power Generator