Among numerous modern high-performance energy technologies that allow for conversion of chemical energy into electricity and heat, the most interesting are direct carbon fuel cells (DCFCs). They are the only ones among all types of fuel cells that allow for a direct conversion of chemical energy stored in the solid fuel (carbon) into electricity. Furthermore, they are characterized by high performance, which is not limited due to the Carnot's rule, low emissions of such substances as SO2, NOx, fly ashes and others, and a relatively simple design since there are no moving components. Nowadays, DCFCs have been developed all over the world. These cells differ first and foremost in the electrolyte they use. The type of electrolyte determines both configuration of the device and operating temperature. The paper discusses current state of knowledge concerning DCFC technology with alkaline (hydroxide) electrolyte and presents the results of research and development studies concerning such cells all over the world. Furthermore, main factors and parameters that impact on the operation of individual cells and potential challenges that have to be overcome in order to develop these technologies were characterized and discussed.