This report describes activities for the second quarter of work performed under this agreement. Kick off meetings with MEFOS, Kvarner and Siemens Westinghouse were held during the reporting period. MEFOS and Kvaerner have completed initial computational simulations. MEFOS has drafted a detailed experimental test plan and is making preparations for atmospheric testing, scheduled to begin on June 5.

This report describes activities for the fourth quarter of work performed under this agreement. A second round of atmospheric testing was conducted as scheduled on September 2 through September 4, 2003. The test results demonstrated a much-improved rate of carbon dissolution with gas yields close to expectations. Additional atmospheric testing to demonstrate a commercially feasible feed and oxygen injection method is scheduled for the week of December 8, 2003.

This report describes activities for the third quarter of work performed under this agreement. Atmospheric testing was conducted as scheduled on June 5 through June 13, 2003. The test results were encouraging, however, the rate of carbon dissolution was below expectations. Additional atmospheric testing is scheduled for the first week of September 2003. Phase I of the work to be done under this agreement consists of conducting atmospheric gasification of coal using the HyMelt technology to produce separate hydrogen rich and carbon monoxide rich product stream. In addition smaller quantities of petroleum coke and a low value refinery stream will be gasified. DOE and EnviRes will evaluate the results of this work to determine the feasibility and desirability of proceeding to Phase II of the work to be done under this agreement, which is 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 fifth quarter of work performed under this agreement. A third round of atmospheric testing was conducted as scheduled on December 9 through December 12, 2003. The test results demonstrated a much-improved rate of carbon dissolution with gas yields close to thermodynamic equilibrium at nearly doubled feed rates of September testing and a commercially viable feed and oxygen injection technique. Additional super-atmospheric testing to perform the last task in the MEFOS experimental program is scheduled for the week of August 2004.