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. The operation of sub-MW hybrid Direct FuelCell/Turbine power plant test facility with a Capstone C60 microturbine was initiated in March 2003. The inclusion of the C60 microturbine extended the range of operation of the hybrid power plant to higher current densities (higher power) than achieved in previous tests using a 30kW microturbine. The design of multi-MW DFC/T hybrid systems, approaching 75% efficiency on natural gas, was initiated. A new concept was developed based on clusters of One-MW fuel cell modules as the building blocks. System analyses were performed,more » including systems for near-term deployment and power plants with long-term ultra high efficiency objectives. Preliminary assessment of the fuel cell cluster concept, including power plant layout for a 14MW power plant, was performed.« less