In this paper, design and exergy method optimization of a 5kW power output PEFC fuel cell with cogeneration application has been investigated. It is assumed that cooling water is passed through fuel cell cooling channel, warmed up and supplied for space heating application. The performance of the proposed system has been optimized by the second law based exergy analysis. Results show for the maximum system efficiency and minimum entropy generation, fuel cell temperature and voltage should be as high as possible in the range of application. Also, the fuel cell pressure and stoichiometric air fuel ratio should be as low as possible in the range of application. The results of this investigation are valid for full load of condition of 5 KW. So, the results are not applicable for any other power level.

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