Micro gas turbines (mGT) have not yet succeeded in conquering the small-scale combined heat and power (CHP) market. One reason is that their electrical efficiency is not high enough to maintain a cost-effective operation. A two-shaft intercooled mGT has the potential to meet the current market demand. This technology maintains a high electrical efficiency even at part-load and coupled with its fuel-flexible combustion chamber, it is an ideal candidate for CHP concepts in a renewable future. In this paper, performance analysis on two-spool mGT is carried out with various fuel blends. Attention is given to the low-pressure and high-pressure compressors and the variation of surge margin by adding hydrogen and syngas. Two control strategies for the mGT are adopted. In the first scenario, the two shafts have equal rotational speeds while in the second, the speeds are controlled independently. As the engine is operated at equal speeds, the maximum performance with 100 vol. % of syngas is observed at 85% of the nominal load while 100 vol. % of hydrogen shows maximum efficiency at a load of 63.7%. At electric power lower than 60% and for high amounts of syngas in natural gas, the low-pressure compressor (LPC) operates closely to surge line. In the second scenario, the efficiency increases as the load decreases and the LPC runs in an efficient and safe operating region. Additionally, the amount of nitrogen in syngas affects the part-load performance of the two-spool mGT.