The Molten Carbonate Fuel Cell (MCFC) technology has been developed in USA, Japan, Korea and Europe for many years. What has started about 30 years ago as an interesting laboratory object has now matured to a potential alternative to conventional power generation systems. Especially the combined heat and power (CHP) generation is an area, where MCFC power plants can be applied with great advantage, due to the high efficiencies which can be achieved. It was demonstrated by several manufacturers that in the sub-MW region MCFC power plants can reach electrical efficiencies of 47%. By making use of the heat generated by the system, total efficiencies of more than 80% can be achieved. The present paper will discuss some aspects of the development work going on with a focus on the role of the molten carbonate contained in the cells. An outlook will be given for the future prospects of this young technology in a changing energy market. (c) 2006 Elsevier B.V. All rights reserved.