An electrolytic cell for producing chlorine and basic hydrogen peroxide suitably includes an anode partition and a cathode partition separated by a membrane. The cathode partition is divided into a catholyte compartment and a gas plenum by a gas diffusion cathode. The anode partition electrolyzes alkali chloride received from the laser to produce free chlorine and alkali ions. The catholyte partition reduces oxygen received from the gas plenum through the cathode, and produces alkaline peroxide from the oxidized components combined with alkali ions received through the membrane from the anode partition. The cell is particularly useful in a fuel regeneration system (FRS) for a chemical oxygen iodine laser (COIL).