Thanks to generally less stringent cost constraints, portable power fuel cells, the direct methanol fuel cell (DMFC) in particular, promise earlier market penetration than higher power polymer electrolyte fuel cells (PEFCs) for the automotive and stationary applications. However, a large-scale commercialization of DMFC-based power systems beyond niche applications already targeted by developers will depend on improvements to fuel cell performance and performance durability as well as on the reduction in cost, especially of the portable systems on the higher end of the power spectrum (100-250 W). In this part of the webinar, we will focus on the development of advanced materials (catalysts, membranes, electrode structures, and membrane electrode assemblies) and fuel cell operating concepts capable of fulfilling two key targets for portable power systems: the system cost of $5/W and overall fuel conversion efficiency of 2.0-2.5 kWh/L. Presented research will concentrate on the development of new methanol oxidation catalysts, hydrocarbon membranes with reduced methanol crossover, and improvements to component durability. Time permitted, we will also present a few highlights from the development of electrocatalysts for the oxidation of two alternative fuels for the direct-feed fuel cells: ethanol and dimethyl ether.