Propane is a typical widespread fuel, which is often used for camping applications, because it can be transported easily and be stored in liquid form in pressure vessels for mobile and portable use. Propane as feedstack for hydrogen production offers a new way to a cheap fuel for fuel cells. The generation of a PEFC hydrogen fuel gas can be perfomed by catalytic cracking of propane. The decomposition of the liquified hydrocarbon takes place at temperatures above 800 degrees C at atmospheric pressure. A fuel processor based on this simple concept can be built much smaller and less expensive than existing ones using steam reforming technology. A propane cracking system works without shift-conversion, gas purification for removal of CO and without a steam generator. The removal of small amounts of CO from the hydrogen rich gas produced is possible by using a simple methanation step. A low cost portable fuel cell device is under development consisting of a polymer electrolyte fuel cell, a hydrogen production system based on catalytic cracking of propane; a propane storage container and an electronic control unit. Combined with a fuel cell providing 200 W gross electric power, a net power output of about 130 to 160 W can be achieved. The PEFC used will contain low cost bipolar plates made of carbon-polymer composite materials.