A direct oxidation fuel cell system includes a membrane electrode assembly (MEA), a high concentration fuel and an oxidant source. Embodiments include a controller for adjusting the oxidant stoichiometric ratio or air flow to maximize the liquid water phase in the cathode exhaust and minimize the water vapor in the exhaust thereby eliminating the need for a water condenser for condensing water vapor produced and exhausted from the cathode of the MEA.

 
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