Westinghouse is developing its tubular solid oxide fuel cells (SOFCs) for a variety of applications in stationary power generation markets. By pressurizing a SOFC and integrating it with a gas turbine (GT), power systems with efficiencies as high as 70-75% can be obtained. The first such system will be tested in 1998. Because of their extraordinarily high efficiency (60-70%) even in small sizes the first SOFC products to be offend are expected to be integrated SOFC/GT power systems in the 1-7 MW range, for use in the emerging distributed generation (DG) market segment. Expansion into larger sizes will follow later. Because of their modularity, environmental friendliness and expected cost effectiveness, and because of a worldwide thrust towards utility deregulation, a ready market is forecasted for baseload distributed generation. Assuming Westinghouse can complete its technology development and reach its cost targets, the integrated SOFC/GT power system is seen as a product with tremendous potential in the emerging distributed generation market. While Westinghouse has been a leader in the development of power generation technology for over a century, it does not plan to manufacture small gas turbines. However, GTs small enough to integrate with SOFCs and address the 1-7 MW market are generally available from various manufacturers. Westinghouse will need access to a new set of customers as it brings baseload plants to the present small market mix of emergency and peaking power applications. Small cogeneration applications, already strong in some parts of the world, are also gaining ground everywhere. Small GT manufacturers already serve this market, and alliances and partnerships can enhance SOFC commercialization. Utilities also serve the DG market, especially those that have set up energy service companies and seek to grow beyond the legal and geographical confines of their current regulated business. Because fuel cells in general are a new product, because small baseload applications are a new segment, and because deregulation will continue to shake up the mature traditional power generation market, the commercial risks of launching a new product at this time are unique and considerable. Hence, a collaborative approach to commercialization is deemed desirable and appropriate, and collaboration with GT manufacturers and utilities will be addressed in this paper.