The BEACON process is based on the catalytic deposition of a highly reactive carbon from low heating value gases, primarily by the carbon monoxide disproportionation reaction. This carbon is subsequently reacted with steam to produce predominantly methane or hydrogen, depending on the catalyst formulation and operating conditions. Commercial application envisions an air-blown coal gasification combined-cycle power plant with a coproduct of either methane or hydrogen. Significant cost reductions are anticipated relative to corresponding oxygen-blown coal gasification systems. Excellent fluid bed catalysts have been developed which have retained initial activity for over 400 hours of steady state operation. This stability was demonstrated in a tandem reactor system which provides for semi-continuous catalyst circulation between the carbon deposition and steam gasification fluid bed reactors.