Fuel cells have great application potential as stationary power plants, as power sources in transportation, and as portable power generators for electronic devices. Most fuel cells currently being developed for use in vehicles and as portable power generators require hydrogen as a fuel. Chemical storage of hydrogen in liquid fuels is considered to be one of the most advantageous options for supplying hydrogen to the cell. In this case a fuel processor is needed to convert the liquid fuel into a hydrogen-rich stream. This paper presents a second-law analysis of an integrated fuel processor and fuel cell system. The following primary fuels are considered: methanol, ethanol, octane, ammonia, and methane. The maximum amount of electrical work and corresponding heat effects produced from these fuels are evaluated. An exergy analysis is performed for a methanol processor integrated with a proton exchange membrane fuel cell, for use as a portable power generator. The integrated FP-FC system, which can produce 100 W of electricity, is simulated with a computer model using the flow-sheeting program Aspen Plus. The influence of various operating conditions on the system efficiency is investigated, such as the methanol concentration in the feed, the temperature in the reformer and in the fuel cell, as well as the fuel cell efficiency. Finally, it is shown that the calculated overall exergetic efficiency of the FP-FC system is higher than that of typical combustion engines and rechargeable batteries. (c) 2006 Elsevier Ltd. All rights reserved.