A new integrated power and breeding blanket is described. The blanket incorporates features that make it suitable for synthetic fuel production. It is matched to the thermal and electrical requirements of the General Atomic water-splitting process for producing hydrogen. The fusion reaction is the Tandem Mirror Reactor (TMR) using Mirror Advanced Reactor Study (MARS) physics. The canister blanket is a high temperature, pressure balanced, cross-flow heat exchanger contained within a low activity, independently cooled, moderate temperature, first wall structural envelope. The canister uses Li2O as the moderator/breeder and helium as the coolant. “In situ” tritium control, combined with slip stream processing and self-healing permeation barriers, assures a hydrogen product essentially free of tritium. The blanket is particularly adapted to synfuels production but is equally useful for electricity production or co-generation.