In August 2002, Wartsila Corporation and Haldor Topsoe A/S entered into a co-operation agreement to start joint development program within the planar SOFC technology. The development program aims to bring to the market highly efficient, clean and cost competitive fuel cell systems with power outputs above 200 kW for distributed power generation with CHP and for marine applications. In this study, the product concept for a 250 kW natural gas-fuelled atmospheric SOFC plant has been studied. The process has been calculated and optimised for high electrical efficiency. In the calculations, system efficiencies more than 55-85% (electrical co-generation) have been reached. The necessary balance of plant (BoP) components have been identified and the concept for grid connection has been defined. The BoP includes fuel and air supply, anode re-circulation, start-up steam, purge gas, exhaust gas heat recovery, back-up power, power electronics and control system. Based on the analysed system and component information, a conceptual design and cost break down structure for the product have been made. The cost breakdown shows that the stack, system control and power electronics are the major cost factors, while the remaining BoP equipment stands for a minor share of the manufacturing cost. Finally, the feasibility of the SOFC plants has been compared to gas engines. (C) 2004 Elsevier B.V All rights reserved.