This document reports on the activities of the second quarter, April through June, of 2003 for phase 2 of the project on syngas upgrading, a low temperature approach. Modifications were implemented to the hydrogen flow test rig per safety review comments. Delivery of ETM hardware continued and buildup of the ETM system continued. SIMTECHE analyzed the data from flow tests, provided input to the test plan and project review presentation and provided input to the facility requirements specification produced for Tennessee Eastman's consideration. Nexant also helped to analyze the flow test data, prepared the facility requirements specification for consideration by Eastman, and prepared presentation materials for the CO{sub 2} project review. A presentation was made of the program status to the Carbon Sequestration review team in Pittsburgh, PA on June 3, 2003.

Modifications were implemented to the hydrogen flow test rig per safety review comments, and the apparatus was tested for leaks. Tests were then done using Helium/CO{sub 2} mixtures to re-verify performance prior to hydrogen testing. It was discovered that hydrate formation was more difficult to initiate, and new initiation methods were developed to improve the tests. Delivery of ETM hardware continued and buildup of the ETM system continued, the ETM is now mechanically complete. The STU (pilot plant) site selection process was resumed because Tennessee Eastman declined to participate in the program. Two potential sites were visited: The Global Energy/Conoco-Phillips Wabash River Plant, and the Tampa Electric Polk Power Plant.