General aviation Flight Instructor reported an engine failure during the takeoff roll on a training flight and rejected the takeoff on the runway. The instructor was unable to start the engine and was towed back to the hangar.

Narrative

Lesson with student was scheduled from XA:00-XC:00. Performed preflight per the aircraft checklist; checked fluid levels (oil; fuel) and deemed as sufficient levels. Sumped both sumps and no water/debris found in fuel. After preflight complete; plane was started following the startup checklist. Warmed up engine oil temps to desired levels as we gathered preflight information such as ATIS; devising a plan of action for the lesson (remain in the pattern for TOL). Called ground for taxi; taxi'd via [Taxiway] 1; 2; 3 for runup at Runway XX. After taxiing to Runway XX; proceeded to watch student do runup via runup checklist; no errors noticed; airplane seemed to fit all required parameters. Following runup; requested clearance to takeoff and remain in the pattern for pattern work on Runway XX. Received clearance for immediate takeoff followed by remaining in the traffic pattern. After reading back clearance; student taxi'd aircraft onto the runway; lined the aircraft up with the centerline; and proceeded to add full power. After several seconds on the roll and gaining airspeed; engine gauges began to read incorrect (Oil temp; coolant; EGT's; and CHT all showing that they were above limitations) and in some cases; obviously incorrect readings -- some reading numbers that were clearly not possible. Immediately following these readings; engine seemed to quit and propeller stopped spinning; student immediately applied breaking to get us stopped just passed the displaced threshold on Runway XX. Following the plane being stopped and secured; contacted Tower and immediately let them know that we were disabled on the runway and will attempt to restart the engine. Prior to attempting restart; verified switches were in the correct position; choke was off; throttle was idle. After pushing the start button; propeller spun for a half second before quitting once again followed by a slight burning odor; discontinued any more startup attempts after this moment. Contacted Tower to let them know we were unsuccessful on the restart attempt and will remain in the plane on the runway and need to shut down to maintain battery. Gave phone number to Tower in order to contact me if needed. Shut down both magnetos; avionics; and master switch while we waited for the airport tow to bring us back to our hangar. Following the plane being back in the hangar; briefly inspected the plane to see if there was any obvious issues to no avail.