Phase I of the work to be done under this agreement consisted of conducting atmospheric gasification of coal using the HyMelt technology to produce separate hydrogen rich and carbon monoxide rich product streams. In addition smaller quantities of petroleum coke and a low value refinery stream were gasified. Phase II of the work to be done under this agreement, consists of gasification of the above-mentioned feeds at a gasifier pressure of approximately 5 bar. The results of this work will be used to evaluate the technical and economic aspects of producing ultra-clean transportation fuels using the HyMelt technology in existing and proposed refinery configurations. This report describes activities for the thirteenth quarter of work performed under this agreement. MEFOS, the gasification testing subcontractor, reported to EnviRes that they were having difficulty with refractory vendors meeting specifications for the lining of the pressure vessel. EnviRes is working to resolve this issue.

This report describes activities for the fifteenth quarter of work performed under this agreement. MEFOS, the gasification testing subcontractor, reported to EnviRes that the vendor for the pressure vessel for above atmospheric testing plans to deliver it by October 20, 2006. MEFOS performed a hazardous operation review of pressurized testing.

This report describes activities for the thirteenth quarter of work performed under this agreement. EnviRes initiated a wire transfer of funds for procurement of a pressure vessel and associated refractory lining. Phase I of the work to be done under this agreement consisted of conducting atmospheric gasification of coal using the HyMelt technology to produce separate hydrogen rich and carbon monoxide rich product streams. In addition smaller quantities of petroleum coke and a low value refinery stream were gasified. Phase II of the work to be done under this agreement, consists of gasification of the above-mentioned feeds at a gasifier pressure of approximately 5 bar. The results of this work will be used to evaluate the technical and economic aspects of producing ultra-clean transportation fuels using the HyMelt technology in existing and proposed refinery configurations.