Most of the conventional linear generator is constructed with either Alnico (specially AlNiCo-9) or Neodymium iron boron (NdFeB) permanent magnets (PMs) for harvesting oceanic wave energy. Alnico is a composition of aluminium (Al), nickel (Ni), and cobalt (Co) added to iron, which is its major volumetric component. Alnico has a poor magnetic energy product, and NdFeB contains a rare earth element. To overcome this issue, a recently developed rare-earth free iron nitride (Fe 16 N 2 ) compound-based PM linear generator (PMLG) is proposed in this study as an alternative solution for avoiding rare earth material while obtaining high output power. To the best of authors' knowledge, newly invented Fe 16 N 2 is not proposed, analysed, and investigated in any electrical generator. In this context, Fe 16 N 2 is proposed in a linear generator as PM for producing adequate magnetic flux. For analysis and testing the performance of the proposed material, a PMLG is designed. The performances are compared for using Fe 16 N 2 and AlNiCo PMs in the same PMLG design for a fair comparison. It is considered that the proposed PMLG is connected to a direct drive power take-off system. Simulation results show that the proposed PMLG having Fe 16 N 2 generates 55% more electrical power than that of using AlNiCo. The voltage, current, magnetic flux linkage, power, and magnetic flux density of the proposed PMLG are investigated extensively and compared with those of AlNiCo. The finite element method is applied in the ANSYS/Maxwell software environment for testing the PMLG with the conventional and the proposed PMs as well as results are presented. The proposed design is also validated with a small laboratory prototype.