The present invention includes an underwater vehicle power unit and method of operating the same comprising: a fuel and waste stack comprising one or more reactant or fuel storage bladders and one or more waste storage bladders; a heater; a reactor that generates hydrogen and waste; a hydrogen and waste separator; a back-pressure regulator; a hydrogen and liquid separator; a fuel cell; and a controller that controls the temperature of the heater, the flow of fuel into the reactor, the flow of hydrogen into the fuel cell, the flow of water that dilutes the fuel, the flow of waste from the reactor and/or the fuel cell into the one or more waste storage bladders.