Atrex Energy, Inc. will develop and optimize YSZ electrolyte-based cell technology for low cost, low temperature (550~650C), and high energy efficiency operation. The technology will be implemented and demonstrated in a high efficiency 2~3kW SOFC with applicability to sub-MW systems. The specific objective is to develop, build, and test a low degradation (<0.1%/1000 hours), high energy efficiency (>50%), low cost (<$1.0/watt) next generation tubular SOFC stack. The stack will serve as a significant precursor leading to the development of a module for megawatt power applications as well as be immediately, or with little iteration, deployable as an inexpensive commercial unit for critical applications. The work includes cell technology development tasks to develop and optimize a new ceramic interconnection to replace the current LaCrO3 interconnection; optimize the anode; improve the power density and durability of commercial cells through tailoring the nanostructure of the surface of cathodes that possess complex three-dimensional topographies using a simple one-step Atomic Layer Deposition coating; and create a thinner denser electrolyte to increase performance at low temperatures. The team will also update/modify manufacturing equipment, modify Balance-of-Plant system, and demonstrate the system at the 550~650C temperature range.