stringent environmental emission and sitting requirements, while taking full advantage of the Nation's vast coal resources. A major milestone in the development of IGee technology in the United States was achieved recently with successful operation of the Cool Water facility at Daggett, California. The Cool Water demonstration successfully integrated oxygen-blown, entrained-flow gasification; cold gas scrubbing technology for contaminant removal; and a modern combined-cycle gas turbine system for power generation. An advanced concept has been developed which improves upon this first-generation IGCC technology. By using an 'glass-blown gasifier (which consurres less auxiliary power than an oxygen-blown system), hot gas cleanup, and an innovative tail gas treatment processing scheme, the concept provides higher thermal efficiency and I, superior environmental performance when compared to first-generation systems. This advanced approach will offer an excellent option for meeting future and potentially more stringent environmental emission constraints. Its standardized modular design and simple process configuration are also expected to yield significantly lower engineering and equipment costs while providing excellent flexibility;.': the capital expenditures required. The Department of Energy (DOE), The M. W'. Kellogg Company (Kellogg), and Bechtel Development Company (Bechtel) have negotiated a Cooperative Agreement to design, build, and operate a nominal 60 megawatt (HWe) advanced IGCC plant to demonstrate the commercial viability of this concept. Named the "Appalachian Project," this commercial scale grassroots facility will be located in Somerset County, Pennsylvania, 70 miles east of Pittsburgh (Figure 1). The plant will be designed to convert 551 tons per day of local bituminous coal to fuel gas for delivery to a combined-cycle power generation block which will feed a utility power grid. The project will integrate a number of technologies fostered by DOE. Among these an. the KRW Energy Systems, Inc. (KRW) , fluidized-bed gasifier (development of which began at Waltz Mill, Pennsylvania, in 1972), in-beddesulfurization using limestone sorbent (demonstrated in 1985/86), and zinc ferrite sulfur removal in an external step (tested at pilot scale during 1986/87). The objective of the Appalachian Project is to demonstrate an efficient, economical, and environmentally superior method of generating electric power from coal. The work to be performed under the Cooperative Agreement includes the design, construction, and operation of the demonstration plant. The project 1estimated to cost $243,837,000 with the Government share being $87,528,500, or 36 percent. Construction is scheduled to begin by mid-1989 with the 2-year operating phase starting in mid-1991. Operation of the plant during the 2-year demonstration period will provide the information and experience needed for system commercialization.