The present invention concerns an SOFC system comprising an anode off-gas recirculation arrangement in which anode off-gas is pumped by a fan or pump of a coaxial turbine-fan assembly, the system comprising a condenser for condensing water contained in said anode off -gas and an evaporator for producing steam from said condensed water, wherein said steam is used to drive the turbine. The method comprises further methods for operating the SOFC system and/or for producing electricity. In a preferred embodiment, the coaxial turbine- fan assembly comprises a stream lubricated bearing.