A simplified direct oxidation fuel cell system is provided. The fuel cell is constructed in such a manner that fuel is added to the cell anode as it is consumed and water is evaporated off at cell cathode so that there is no need for recirculation of unreacted fuel at the cell anode or water at the cell cathode. In addition, carbon dioxide generated from the anodic reaction is passively vented out of the system by using a CO2 gas permeable membrane material integrated as part of the anode chamber construction. It is thus possible that, the CO2 separation from the anode fluid occurs without the recirculation of the anode fluid outside the anode chamber. The passive system in which fuel is added as it is consumed and CO2 separated, both without pumping, ultimately will increase net power provided to the load due to low parasitic losses.