A solid electrolyte fuel cell power generating system comprising a solid electrolyte fuel cell containing an anode, an anode fuel inlet and an anode exhaust gas outlet, a fuel source in communication with the anode inlet, a cathode, a cathode oxidant inlet and a cathode exhaust oxidant outlet, an oxidant source in communication with the cathode oxidant inlet, and means for recycling at least part of an exhaust gas stream emanating from the anode exhaust gas outlet to the anode fuel inlet. Such means comprise a heat exchanger in communication with the anode exhaust gas outlet, a condenser in communication with the heat exchanger and a combustor in communication with the heat exchanger and the anode fuel inlet. Preferably, the system includes a reformer in communication with the anode exhaust gas outlet and the heat exchanger.