The co‐generation of electricity and chemicals via direct internal reforming solid oxide fuel cells (DIR‐SOFCs) offers a promising route to carbon‐neutral energy solutions. However, challenges such as inadequate performance and fast degradation, particularly when using hydrocarbon fuels like CH4, hinder the deployment of DIR‐SOFC technology. This study addresses three critical issues: the effect of fuel composition on electrochemical properties, the mechanisms and microstructural impacts of carbon deposition, and the practical feasibility of DIR‐SOFCs at an industrial scale. First, comprehensive polarization and impedance analyses are conducted to assess the impact of varying fuel compositions—specifically p(CH4) and p(H2O)—on DIR‐SOFC performance. Second, advanced morphological characterization, machine learning‐assisted 3D reconstructions, and numerical simulations are utilized to reveal carbon deposition behavior and its effects on anode microstructures. Quantitative analysis of carbon's impact on pores, Ni, and YSZ phases provides novel insights into carbon‐induced microstructural changes. Finally, the industrial‐scale co‐generation of electricity and chemicals is validated, emphasizing both energy efficiency and operational stability. This study enhances the understanding of electrochemical and microstructural mechanisms, offering crucial insights for optimizing DIR‐SOFC design and operation, and laying the groundwork for their broader adoption in a carbon‐neutral future.