Combustion is the primary source for exergy loss in power systems such as combustion engines. To elucidate the exergy loss behaviors in combustion and explore the principle for efficiency improvement, the second-law thermodynamic analysis was conducted to analyze the energy conversion characteristics in laminar premixed flames of methane/hydrogen binary fuels. The sources causing exergy losses in laminar premixed flames included five parts, namely heat conduction, mass diffusion, viscous dissipation, chemical reactions and incomplete combustion, respectively. The calculations were conducted at both atmospheric and elevated pressures, with the equivalence ratio varying from 0.6 to 1.5 and the hydrogen blending ratio increasing from 0% to 70%. The results indicated that the total exergy loss firstly increased and then decreased with increased equivalence ratio, and reached the minimum value at the equivalence ratio of 0.9. This was primarily due to the trade-off relation between the decreased exergy loss from entropy generation and the increased exergy loss from incomplete combustion, as equivalence ratio increased. As the hydrogen blending ratio increased from 0% to 70%, the total exergy loss decreased by 2%. Specifically, the exergy loss from heat conduction decreased, primarily due to the decreased flame thickness. Moreover, the reactions with H-2, H and H2O as reactants were inhibited, leading to decreased the exergy loss from chemical reactions. As pressure increased from 1 atm to 5 atm, the total exergy loss decreased by 1%, because the exergy losses induced by heat conduction and chemical reactions decreased as the flame thickness was reduced. The exergy loss from incomplete combustion also decreased, because elevated pressure inhibited dissociations and decreased the mole fractions of incomplete combustion products. (C) 2019 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.