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.

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 ninth quarter of work performed under this agreement. The design of the vessel for pressure testing has been completed. The design will be finalized and purchased in the next quarter.

This report describes activities for the seventh quarter of work performed under this agreement. We successfully completed atmospheric testing in the previous quarter. We await approval from the Swedish pressure vessel board to allow us to proceed with the procurement of the vessel for super atmospheric testing.

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.