Although the fuel cells research and development community has traditionally focused the majority of its efforts on improving the fuel cell stack's voltage (electrical efficiency), combined heat and power (CHP) fuel cell system (FCSs) may achieve a competitive advantage over conventional generators only if the research and development community refocuses its efforts on cultivating other inherent technical qualities of such systems. Based on an analysis of their use within energy markets, these inherent qualities include (1) an ability to vary their electrical load rapidly, (2) an ability to vary their heat to power ratio during operation, and (3) an ability to deliver their waste heat to a useful thermal sink. This article focuses on the last of three design objectives: effectively capturing heat from a CHP FCS. This article (1) delineates the design specifications for a 6 Me CHP FCS, (2) analyses four possible cooling loop configurations for this system, and (3) concludes which one of these provides the optimal heat recovery performance. (C) 2003 Published by Elsevier Science B.V.