In underwater applications such as unmanned undersea vehicle (UUV) propulsion, mass and volume constraints often dictate system energy density and specific energy, which are targeted to exceed 300WhL−1 and 300Whkg−1, respectively, in order to compete with state-of-the-art battery technologies. To address this need, a novel carbide-based fuel system (CFS) intended for use with a solid oxide fuel cell (SOFC) is under development that is capable of achieving these energy metrics as well as sequestering carbon dioxide. The proposed CFS uses calcium carbide and calcium hydride that react with water to generate acetylene and hydrogen as the fuel and calcium hydroxide as a carbon dioxide scrubber. The acetylene is hydrogenated to ethane and then reformed to syngas (carbon monoxide and hydrogen) before being utilized by the SOFC. Carbon dioxide effluent from the SOFC is reacted with the calcium hydroxide to produce a storable solid, calcium carbonate, thus eliminating gas evolution from the UUV. A system configuration is proposed and discussion follows concerning energy storage metrics, operational parameters and preliminary safety analysis.