Control Techtronics International (CTI) is conducting a project to reduce air emissions and increase efficiency in coal fired boilers in Krakow, Poland and to create a commercial venture in Poland which can act as a leader for efficient combustion in boilers throughout the region. To achieve the technical goals of the project, CTI will use a three part program as follows: Analyze the fuel specifications of a given plant and recommend modifications as necessary; apply automatic combustion controls systems to the boilers; and train plant operators in proper plant operation as well as proper use of control systems. The following activities took place in this quarter: (1) Complete the installation of controls for all five boilers; (2) Final performance testing by the Politechnika on one hot water boiler after installation of controls; (3) Procurement of graded coal by MPEC; (4) Complete joint operator training of the Balicka operators and MPEC engineers by the Politechnika and establishment of a training center in Krakow; (5) Secured two sites for Budget period 2; and (6) Completion of adoption of control components to meet Polish requirements.