The BEACON process involves the catalytic deposition of a highly reactive form of carbon from a gas stream which contains carbon monoxide. The carbon-depleted gas is combusted with air to produce power, and the carbon is reacted with steam to produce methane or hydrogen. Catalyst development at SOHIO showed that larger quantities (4 kg) of satisfactory C77-K2 catalyst could be prepared. Several preparation modifications were studied, and, although some showed satisfactory results, none were sufficiently attractive to be adopted. Studies were conducted at SOHIO on promoters for the C77 type catalyst that would increase hydrogen production and suppress methane. Several were found, one of which operates at 550/sup 0/C. The C77-K1 catalyst was found not to be satisfactory for converting oil shale retort off-gas to hydrogen. The C77-K2 catalyst does perform this conversion under economically attractive conditions. Physical characteristics for sieve fractions of a C77-K2 catalyst were determined. A new catalyst support was evaluated and found to be unsatisfactory. Tandem Reactor development proceeded at TRW with completion of construction and the test readiness review and the initiation of shakedown testing. Good fluidization with a C77-K2 catalyst was achieved with the installation of a stirrer in a 1.5-inch reactor at SOHIO. Good steady state carbon deposition and steaming rates were achieved over a 10 cycle test. 6 figures, 11 tables.