The overall objective of this program is to develop and verify the design of a prototype molten carbonate fuel cell stack which meets the requirements of a 1990's-competitive, coal-fired, electrical utility central station, or industrial cogeneration power plant. Progress is detailed. Compressive creep testing of the present anode continued; the samples have now accrued 1220 hours of testing at 1300/sup 0/F and continue to support the earlier data showing improved creep resistance. Testing to define the operating limits that are suitable for extending the life of nickel oxide cathodes to an acceptable level is continuing. The mechanical characteristics of several one-piece cathode current collector candidates are being measured for suitability. Metallographic evaluation of stack separators tested for 2000 hours during the previous report period was initiated. Post-test characterization of surface treated INCO 825 that was tested for 1000 hours at 1400/sup 0/F in a single cell test was completed. Retort corrosion testing of this material accumulated approx. 1500 hours of testing and is continuing. Potentiostatic immersion testing of alternative single piece cathode current collector materials was initiated. The 20-cell Stack No. 3 progressed from completion and delivery of the Test Plan through Design Review, assembly, and initial heat-up for the start of testing. Manufacture of separator plates for the upcoming 20-cell Stack No. 4 has begun. The primary objective of this follow-on test will be stack cost reduction. 40 figures, 33 tables.