The overall objective of this 29-month program is to develop and verify the design of a prototype molten carbonate fuel cell stack which meets the requirements of 1990's competitive coal-fired electrical utility central station or industrial cogeneration power plants. During this quarter, effort was continued in all four major task areas: Task 1 - system studies to define the reference power plant design; Task 2 - cell and stack design, development and verification; Task 3 - preparation for fabrication and testing of the full-scale prototype stack; and Task 4 - developing the capability for operation of stacks on coal-derived gas. In the system study activity of Task 1, preliminary module and cell stack design requirements were completed. Fuel processor characterization has been completed by Bechtel National, Inc. Work under Task 2 defined design approaches for full-scale stack busbars and electrical isolation of reactant manifolds and reactant piping. Preliminary design requirements were completed for the anode. Conductive nickel oxide for cathode fabrication has been made by oxidation and lithiation of porous nickel sheet stock. A method of mechanizing the tape casting process for increased production rates was successfully demonstrated under Task 3. In Task 4, theoretical calculations indicated that hydrogen cyanide and ammonia, when present as impurities in the stack fuel gas, will have no harmful effects. Laboratory experiments using higher than anticipated levels of ethylene showed no harmful effects. Components for the mobile test facility are being ordered.