The primary objective of this project is to initiate research activities to support the very successful demonstration project “Dansk Mikrokraftvarme” in two es-sential aspects: 1. As the fuel cell technology is matured through the demonstration pro-ject, the need for detailed modeling tools to assist in further optimiza-tion of the technology with respect to efficiency, reliability and durability will be required. 2. It is clear that natural gas is an important source of hydrogen in the first steps towards implementation of micro CHP systems based on fuel cell technology. In the longer run, however, this is not a sustainable fuel. Therefore, it is important to pave the road towards operation of these systems on an environmentally sustainable fuel such as biogas. The primary technological aim of this project is thus to develop and demon-strate an optimized third generation micro CHP system including a high tem-perature PEM fuel cell stack (HT-PEMFC) and a multifuel reformer for small-scale combined heat and power production. The primary focus is directed to-wards operation on biogas but other renewable fuel such as bioethanol and biodiesel will also be given some attention. The overall scientific objective of this project is to establish a generic platform for advanced system integration of fuel cell systems. System integration refers to system design, integration of components and subsystems in complete fuel cell systems, control system development, and heat integration of processes in the system.