The Department of Energy is investigating a process concept called Mild Gasification in which rapid devolatilization of coal under mild conditions of temperature and pressure would yield three product slates: a low- or medium-BTU gas, a valuable hydrocarbon condensate, and a reactive char. The ongoing objective of this program is to develop a continuous mild gasification process which will produce a product mix that optimizes process economics. In order to provide the incentive for private industry to commercialize the process, it is necessary to demonstrate yields and qualities in a versatile continuous process development unit (PDU). This unit must be capable of assessing both coal- and process-specific effects in a cost-effective and timely manner. Based on literature reviews and experimental verification, a data base will be developed correlating coal and process parameters with product characteristics. This will provide process developers with the information necessary to derive site-specific economics which will be crucial for the commercialization of the mild gasification process. The literature review and market assessment has been completed under Task 1 of the program. Under Task 2, coal-specific tests are being conducted on three AMAX coals: Chinook, an Indiana {number_sign}3 bituminous coal; Delta, an Illinois {number_sign}6 bituminous coal; and Eagle Butte, a Wyodak subbituminous coal. Various methods of char upgrading are being conducted by AMAX R&D of Golden, Colorado. The upgraded char is then combined with iron ore and tested for pig iron production under an AMAX subcontract to Pellet Technology Corporation of Marquette, Michigan. In addition to the test program, process development and scaleup information is being developed for a 1 ton/hr pilot plant unit. Plans for Tasks 2 and 3, equipment modifications, and report. Results include: char analysis, condensable analysis, waste water analysis, and gas analysis.