The perovskite material Pr0.4Sr0.6Co0.2Fe0.7Nb0.1O3-delta was used as an anode in direct propane fueled solid oxide fuel cells (SOFCs). After exposure of the initial single phase Pr0.4Sr0.6Co0.2Fe0.7Nb0.1O3-delta to a reducing atmosphere at 900 degrees C, it transformed to a two-phase system with nano-particles of a Co-Fe bimetallic alloy uniformly distributed on a Ruddlesden-Popper ceramic phase. High cell power output and good stability were obtained using propane as the fuel and ambient air as the oxidant. Due to the catalytic effect of the Co-Fe bimetallic alloy in the SOFC operating conditions, macromolecular compounds of polycyclic aromatic hydrocarbons (PAHs) were generated as by-products in the exhaust stream of the anode. This novel anode system successfully demonstrated the co-generation of electricity and high value end use chemicals from direct hydrocarbon fueled SOFC systems. (C) 2014 Elsevier B.V. All rights reserved.