A fuel processing system (FPS) (110) is provided for a fuel cell power plant (115) having a fuel cell stack assembly (CSA) (56). A water gas shift (WGS) reaction section (12, 120) of the FPS (110) reduces the concentration of carbon monoxide (CO) in the supplied hydrocarbon reformate, and a preferred oxidation (PROX) section (40) further reduces the CO concentration to an acceptable level. The WGS section (12, 120) includes a reactor (124) with a high activity catalyst for reducing the reformate Co concentration to a relatively low level, e.g., 2,000 ppmv or less, thereby relatively reducing the structural volume of the FPS (110). The high activity catalyst is active at temperatures as low as 250 C., and may be a noble-metal-on-ceria catalyst of Pt and Re on a nanocrystaline, cerium oxide-based support. Then only a low temperature PROX reactor (46) is required for preferential oxidation in the FPS (110).