This paper discusses a new type of compact hydrogen generator suitable for integration into fuel cell power systems. Such generators not only provide a source of ultra-pure hydrogen especially suited for fuel cell use but at the same time could, in principle, achieve thermal efficiencies approaching 100% for the conversion of hydrocarbons into hydrogen. As a result it should now be possible to build small fuel cell power packages, even as small as 500 watts, which can operate at thermal efficiencies greater than those of large power plants.