This report includes the progress in development of Direct FuelCell/Turbine{reg_sign} (DFC/T{reg_sign}) power plants for generation of clean power at very high efficiencies. The DFC/T power system is based on an indirectly heated gas turbine to supplement fuel cell generated power. The DFC/T power generation concept extends the high efficiency of the fuel cell by utilizing the fuel cell's byproduct heat in a Brayton cycle. Features of the DFC/T system include: electrical efficiencies of up to 75% on natural gas, 60% on coal gas, minimal emissions, simplicity in design, direct reforming internal to the fuel cell, reduced carbon dioxide release to the environment, and potential cost competitiveness with existing combined cycle power plants. FCE successfully completed testing of the pre-alpha DFC/T hybrid power plant. This power plant was constructed by integration of a 250kW fuel cell stack and a microturbine. The tests of the cascaded fuel cell concept for achieving high fuel utilizations were completed. The tests demonstrated that the concept results in higher power plant efficiency. Also, the preliminary design of a 40 MW power plant including the key equipment layout and the site plan was completed.