This study presents an innovative coal-fired power generation system that integrates a Proton Exchange Membrane Fuel Cell (PEMFC), Gas Turbine (GT), and Steam Turbine (ST) with a supercritical water gasification (SCWG) process designed to efficiently convert coal into hydrogen. A pivotal feature of this system is the first-time integration of advanced two-step SCWG technology with PEMFC, which significantly boosts hydrogen yield, thereby elevating overall efficiency. By effectively addressing the thermodynamic limitations of the Carnot cycle, the proposed system achieves an impressive coal-to-electricity conversion efficiency of 51.61%. Economic viability is demonstrated through a competitive levelized cost of energy (LCOE) of $0.052 per kWh and a rapid payback period of approximately 2.87 years. Furthermore, the study analyzes the impact of various operational parameters—such as coal feed capacity, water-to-coal ratio, operating temperatures of the PEMFC, fuel utilization rates, airflow, and hydrogen bypass flow—on system performance. The findings not only advance the efficiency of coal-to-electricity conversion but also contribute valuable insights to the evolution of sustainable coal-fueled power generation technologies.