The Central Arkansas Energy Project has as its objective the conversion of coal in a central location to a more readily usable energy source, medium Btu gas (MBG), for use at dispersed locations as fuel for power production and steam generation, or as a feedstock for chemical processing. The project elements consist of a gasification facility to produce MBG from coal, a pipeline to supply the MBG to the dispersed sites, called end-of-line users. The end-of-line users investigated were the repowering or refueling of an existing Arkansas Power and Light Co. (AP and L) generating station, an ammonia plant, and a combined cycle cogeneration facility for the production of steam and electricity. The steam would be supplied to industrial users and electricity distributed by the AP and L power grid. A comprehensive 14-month study was performed to investigate the project feasibility. The study included preliminary design of the gasification plant including process engineering design bases, process flow diagrams, utility requirements, system descriptions, project engineering design, equipment specifications, plot plan and section plot plans, preliminary piping and instrument diagrams, and facilities requirements. Capital and operating costs were developed based on information from the technical design. Financial analyses and sensitivities were determined. Detailed design and construction schedules and manpower loadings were developed. In summary, the project is technically feasible, but the financial soundness is difficult to project due to uncertainty in energy markets of competing fuels. Key variables which must be defined to a greater degree of certainty before the project can proceed are projections of competing fuel costs, development of the project market and fixing the value of electricity for the cogeneration market.