Direct Carbon Fuel Cells (DCFCs) have great thermodynamic advantages over other high temperature fuel cells such as molten carbonate fuel cell (MCFC) and solid oxide fuel cell. They can have 100% fuel utilization, no Nernst loss (at the anode), and the produced at the anode is not mixed with other gases and is ready for re-use or sequestration. So far only studies have been reported on cell development. In this paper we study in particular the integration of the production of clean and reactive carbon particles from methane as a fuel for the direct carbon fuel cell. In the thermal decomposition process heat is upgraded to chemical energy in the carbon and hydrogen produced. The hydrogen is seen as a product as well as the power and heat. Under the assumptions given the net system electric efficiencies are 22.9% (based on methane lower heating value, LHV) and 20.7% (higher heating value, HHV). The hydrogen production efficiencies are 65.5% (based on methane LHV) and 59.1% (HHV), which leads to total system efficiencies of 88.4% (LHV) and 79.8% (HHV). Although a pure stream is produced at the anode outlet, which is seen as a large advantage of DCFC systems, this advantage is unfortunately reduced due to the need for in the cathode air stream. Due to the applied assumed constraint that the cathode outlet stream should at least contain 4% for the proper functioning of the cathode, similar to MCFC cathodes, a major part of the pure has to be mixed with incoming air. Further optimization of the DCFC and the system is needed to obtain a larger fraction of the output streams as pure for sequestration or re-use.