*** 9801516 Wixom This Small Business Innovation Research Phase II project will develop electrocatalysts for use in direct methanol fuel cells (DMFC). The development of less expensive and CO tolerant electrocatalysts is a key challenge for the commercialization of DMFCS. This proposal utilizes multifunctional Pt-Ru-metal oxide/metal carbide (Pt-Ru-MOx/MCy) materials for the oxidation of methanol. This design combines two previous strategies that have proven very successful in improving efficiency and CO tolerance. Highly dispersed bifunctional sites will be produced on hi-h surface area metal carbide support materials. The bifunctional sites and carbide support are inherently active and CO-tolerant. Pt-Ru particles will be dispersed onto the support materials. Composition and microstructure of the support material and Pt-Ru domains will be characterized. Electrocatalysts will be fabricated into electrodes and evaluated for methanol oxidation activity. These electrocatalysts will be 3-5 times more active toward methanol oxidation than carbon supported catalysts. Furthermore, the greater density of support materials will overcome the diffusion limitations encountered with carbon supported catalysts, thus combining the cost benefits of supported catalysts with the superior performance of unsupported catalysts leading to lower cost and higher power density fuel cells. Efficient, low-cost, and poison-tolerant electrocatalysts will significantly advance the feasibility of using DMFCs in Next Generation Vehicles and portable power supply systems. The DMFC offers several advantages over conventional fuel cells based on hydrogen in particular with respect to fuel energy density, delivery, and storage. ***