As I look at it, it's an oscillating cylinder steam engine and could have been for marine use. These were very simple designs that didn't require a crosshead to manage the straight line piston travel to the angular motion of the crankshaft. They also found themselves in some industrial uses, but were not used in locomotion.

Thank you for your observations.   I thought that it could be an engine of some sort too, but there are no inlet or outlet flanges.  The cylinder pivots back and forth as the crank rotates and the extended shaft at the pivot point is hollow and there is what appears a path for steam (or water) to go around the cylinder to the valve gear.  As far as I can determine there is no exhaust port on the engine.

As for as scale, there is no indication it is O scale other than the bolt size.  The nut, bolt, washer casting are consistent with O scale, although bolt size is relative.  There are very few bolts in the cylinder head indication it is a low pressure design.  The output shaft is large at 12 scale inches in diameter in O scale.  

All in all, I have never seen an engine such as this.  It is a beautiful, well made model though and the engines will grace one of my O scale flat cars.

If you attempt to turn the crankshaft does it turn freely ?   I would put a drop of oil on every pivot or sliding point and in the hole on the steam inlet shaft. Put several drops in that hole and hook it to about 10lb of compressed air OR try using a can of Dustoff to power it.          j

I had not attempted to turn it until you mentioned it.  It does in fact turn and looks awesome as it turns.  I am not sure how to kook it up to see if it will operate under power.  The handle on the Stephenson valve gear does operate the eccentrics.

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