This annual report describes the Blast Furnace Granular Coal Injection project being implemented at Bethlehem Steel Corporation`s (BSC) Burns Harbor Plant. The project is receiving cost-sharing from the U.S. Department of Energy (DOE), and is being administrated by the Morgantown Energy Technology Center in accordance with the DOE Cooperative Agreement No. DE-FC21-91MC27362. This installation is the first in the United States to employ British Steel technology that uses granular coal to provide part of the fuel requirement of blast furnaces. The project will demonstrate/assess a broad range of technical/economic issues associated with the use of coal for this purpose. To achieve the program objectives, the demonstration project is divided into the following three Phases: (1) Phase I - Design. (2) Phase II - Construction. (3) Phase III - Operation. Preliminary Design (Phase I) began in 1991 with detailed design commencing in 1993. Construction at Burns Harbor (Phase II) began in August 1993 and was completed at the end of 1994. The demonstration test program (Phase III) started in the fourth quarter of 1995.