energy from coal... well, I am not sure about the Co2 issue with that approach, but this info refers to the potential for producing energy at point of use from natural gas, the Co2 is reclaimable, the energy efficiently produced.
http://www.naturalgas.org/environment/technology.asp# Clean Electricity - Fuel cells provide the cleanest method of producing electricity from fossil fuels. While a pure hydrogen, pure oxygen fuel cell produces only water, electricity, and heat, fuel cells in practice emit only trace amounts of sulfur compounds, and very low levels of carbon dioxide. However, the carbon dioxide produced by fuel cell use is concentrated and can be readily recaptured, as opposed to being emitted into the atmosphere.
# Distributed Generation - Fuel cells can come in extremely compact sizes, allowing for their placement wherever electricity is needed. This includes residential, commercial, industrial, and even transportation settings.
# Dependability - Fuel cells are completely enclosed units, with no moving parts or complicated machinery. This translates into a dependable source of electricity, capable of operating for thousands of hours. In addition, they are very quiet and safe sources of electricity. Fuel cells also do not have electricity surges, meaning they can be used where a constant, dependably source of electricity is needed.
# Efficiency - Fuel cells convert the energy stored within fossil fuels into electricity much more efficiently than traditional generation of electricity using combustion. This means that less fuel is required to produce the same amount of electricity. The National Energy Technology Laboratory estimates that, used in combination with natural gas turbines, fuel cell generation facilities can be produced that will operate in the 1 to 20 Megawatt range at 70 percent efficiency, which is much higher than the efficiencies that can be reached by traditional generation methods within that output range.