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For automotive applications, it is necessary to maximize the fuel conversion efficiency of a PEM direct-methanol fuel cell (DMFC) over the broadest possible dynamic range of power. The research reported here critically examines the efficiency of the DMFC stack when operated over a broad power range. This research establishes a basis for a control strategy that simultaneously: optimizes DMFC fuel conversion efficiency versus power level, leads into a system level optimization of efficiency vs. power, and provides an operational strategy for controlling a direct-methanol fuel cell for maximum fuel efficiency from minimum to maximum power demand. First, there is an explanation of the experimental conditions used to obtain the DMFC experimental data that is reported and analyzed. Next the DMFC methanol crossover phenomenon is discussed and characterized. Then the conceptual framework for the optimization of fuel conversion efficiency is presented.