Earlier quoted context omitted.
You put in a hydrogen source... in this case, likely natural gas. It combines with oxygen from the air in a process that yields electricity, water, and a small amount of CO2. The key benefit is that the fuel isn't burned. It's converted chemically, so it is a very efficient process. They have a good flash video explaining it here: http://bloomenergy.com/products/solid-oxide-fuel-cell-animat...
Any idea about the relative efficiencies between this chemical reaction versus a thermodynamic process (say, Sterling Engine)?
Fuel cells, for example, typically have a membrane at their core; that membrane tends to get clogged with crud. Stirling engines, on the other hand, are generally heavy (and thus expensive) and need to use exotic materials to handle high temperatures, which they need to operate efficiently.