Objective of Phase II of the ATS Program is to provide the conceptual design and product development plan for anultra high efficiency, environmentally superior and cost competitive industrial gas turbine system to be commercialized by the year 2000. Technical progress covered in this report is confined to Task 4 (conversion to coal) and the nine subtasks under Task 8 (design and test of critical components). These nine subtasks address six ATS technologies: catalytic combustion, recuperator, autothermal fuel reformer, high temperature turbine disc, advanced control system, and ceramic materials.