A novel method of using a liquid phase oxidizer in fuel cell applications has been discovered by researchers at UC Davis. This paper outlines potential implications for improving heat transfer and catalytic activity with this method. Experimental data have been collected and the results show that the proposed method of using liquid phase oxidizer does indeed allow operation of PEM fuel cell systems. Data indicate an improvement in overvoltage at low current but also clearly indicate a severely limited concentration polarization region with non-regenerated fluid. The preliminary data indicate the physical feasibility of the method but also show that more research and development is required.