Many types of fuel cells such as the PAFC (phosphoric acid fuel cell), MCFC (molten carbonate fuel cell), SOFC (solid oxide fuel cell) and PEFC (polymer electrolyte fuel cell) have been developed for utility use in Japan. Among them, the PAFC is now in the 'plant' stage. Several MW class large-capacity demonstration plant and many smaller-capacity units have been constructed and tested for the purpose of evaluation on their efficiency, operability and durability. Those MW class plants are expected to be used as an urban energy centre or a cogeneration system. Smaller units are installed for many kinds of applications such as in hospitals, hotels, restaurants, etc. Efficient performance of fuel cell power plant has been demonstrated by those PAFC plants and units. In addition, the possibility of higher efficiency is indicated by other fuel cells in their stack level, and MCFC plant is under construction to demonstrate its performance. In the next stages, it will be required to demonstrate superior durability and cost perspective in comparison with a conventional power generation system.