Abstract: A novel integrated system for the co-production of heat and electricity for residences or commercial buildings is based on the cracking of hydrocarbons to generate hydrogen for a fuel cell. Compared to prior art reforming methods for hydrogen production, the cracking reaction provides an input stream to the fuel cell that is essentially free of CO, a known poison to the anode catalyst in many fuel cell designs, such as PEM fuel cells. The cracking reaction is coupled with an air or steam regeneration cycle to reactivate that cracking catalyst for further use. This regeneration can provide a valuable source of heat or furnace fuel to the system. A novel control method for system adjusts the durations of the cracking and regeneration cycles to optimize the recovery of reaction heat.