This paper presents heat and power efficiencies of a modeled PEFC system and the methods used to create the system configuration. The paper also includes an example of a simulated fuel cell system supplying a building in Sweden with heat and power. The main method used to create an applicable fuel cell system configuration is pinch technology. This technology is used to evaluate and design a heat exchanger a PEFC system working under stationary conditions, in order to find a solution with high heat utilization. The heat exchanger network for network in the system connecting the reformer, the burner, gas cleaning, hot-water storage and the PEFC stack will affect the heat transferred to the hot-water storage and thereby the heating of the building. The fuel, natural gas, is reformed to a hydrogen-rich gas within a slightly pressurized system. The fuel processor investigated is steam reforming, followed by high- and low-temperature shift reactors and preferential oxidation. The system is connected to the electrical grid for backup and peak demands and to a hot-water storage to meet the varying heat demand for the building. The procedure for designing the fuel cell system installation as co-generation system is described, and the system is simulated for a specific building in Sweden during I year. The results show that the fuel cell system in combination with a burner and hotwater storage could supply the building with the required heat without exceeding any of the given limitations. The designed co-generation system will provide the building with most of its power requirements and would further generate income by sale of electricity to the power arid.