Work was continued on the development of a process for the gasification of bituminous coal with heat from a nuclear reactor. Major objectives of the project are: (1) develop and test components for a gas-cooled reactor system that can heat gases to 2000/sup 0/ to 2500/sup 0/F; (2) investigate coal gasification methods compatible with this system; and (3) develop an exchanger that can utilize high-temperature heat to gasify coal or heat chemical process streams. During the past year, work was concentrated on the design, construction and installation of a fluidized-bed gasifier in the high-temperature heat system. Design of the fluidized-bed gasifier was based on information obtained from laboratory and pilot-scale gasifiers. The gasification chamber, a length of 6-inch, schedule 80 stainless steel pipe, is fitted with ten 1/2-inch Hastelloy-X tubes running lengthwise. Hot helium flowing through the 1/2-inch tubes provides heat for the gasification of the steam-fluidized char in the 6-inch pipe. Helium leaving the gasifier generates the superheated steam required for gasification. Fabrication and installation of the gasifier was completed and shakedown runs started. In the gasifier, the heat-exchanger tubes will be heated to 1900/sup 0/F in a mixture of the corrosive gases, including H/sub 2/, CO, CO/sub 2/, …