Fuel cell power systems are emerging power generation technologies for the efficient, economical and environmentally acceptable production of electricity. In some applications the by-product heat can also be efficiently used in cogeneration. Fuel cells produce electricity through the electrochemical oxidation of a fuel. They can be operated on a variety of fuels, including natural gas, coal gas, land fill gas and renewable fuels. First market entry units are fueled by natural gas. Fuel cells offer the opportunity for a major new manufacturing industry. System studies have shown that fuel cell power plants can be designed with overall system efficiencies in the 50 to 60 percent range (higher heating value basis) (55 to 65 percent on lower heating value basis). Fuel cell power plants are unique in that they offer high efficiency and low emissions even at part-load and in small sizes. Because of their efficiency, fuel cells will help in reducing CO2 emissions. Additional benefits are the environmentally desirable operating characteristics offered by fuel cells. Because electricity is produced through an electrochemical reaction rather than by combustion, fuel cells generate very little NOx and are extremely quiet. This combination of operating characteristics and high efficiency make fuel cells attractive for future electric utility applications. On-site industrial and commercial applications where the by-product heat can be utilized are also attractive. The DOE Office of Fossil Energy, the Gas Research Institute (GRI), and the Electric Power Research Institute (EPRI) are cooperatively sponsoring the development of fuel cell systems for applications in the utility, commercial and industrial sectors. Funding of development and demonstration is also provided by fuel cell developers and potential users. This document describes the fuel cell program of the DOE Office of Fossil Energy and its coordination with other fuel cell activities.