Abstract: The solid oxide fuel cell (SOFC) possesses the advantages of high efficiency, low noise and low emissions. To evaluate the performance of SOFC when fueled by coal seam methane, and compare SOFC with internal combustion engine (ICE), the SOFC power generation system model was built, simulated and analyzed in Aspen Plus. Key system parameters, such as steam to carbon ratio, current density and air preheat temperature, were studied to gain information of their effects on the system performance, for CSM of both 30% and 91% concentration. The technical economy of SOFC and ICE was compared. For CSM of 30% concentration, the efficiency of SOFC is 38.7%, which is slightly lower than that of ICE, the annual CO₂ emission is close to that of ICE. For CSM of 91% concentration, the efficiency of SOFC is 53.2%, which is higher than that of ICE by 13.4%, the annual fuel cost is reduced by 24%, the annual CO₂ emission is reduced by 23%. Due to the cooling demand of the SOFC stack by large amount of fresh air, the NO_x emission of SOFC is twice as that of ICE. The SOFC tends to gain efficiency advantage over ICE for CSM concentration higher than 30% and the efficiency advantage tends to enlarge when the CSM concentration is higher. While for CSM with concentration lower than 30%, the ICE is recommended for power generation.