This paper explores the innovative concept of flexible poly-generation of hydrogen, power and heat using an internal reforming fuel cell. Flow sheet calculations show that total efficiency of the system in terms of hydrogen and power production can be increased significantly up to 90%. Furthermore by the coproduction of hydrogen, operation at double power density becomes feasible. The concept does not suffer from small demand in the beginning of the transition, because of its ability 1) to produce flexibly according to demand, 2) to continuously produce one or more valuable products also at low demand for one of the other products. The concept also overcomes one of the main hurdles of cogeneration namely that it requires heat driven operation in order to really obtain its high efficiency in practice. The flexible poly-generation concept is analyzed to be an important stepping stone in the transition towards a sustainable energy and transport sector. Copyright (C) 2010, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.