Electrolyte vapor entrained in the hot exhaust gas stream from a fuel cell is removed by passing the gas stream through a saturator, over high surface area material, in direct contact with water circulating in a loop which also passes through the saturator. The hot gas stream evaporates a small portion of the water, resulting in cooling of the gas stream and condensing of electrolyte therein as it cools. The electrolyte dissolves into the recirculating water. The water is exchanged at predetermined intervals or when the concentration of electrolyte reaches a predetermined level. At least 99% of the electrolyte can be removed from the gas stream in this manner.