The purpose of Phase 1 was to optimize the clean burning coal briquette (Clean Fuel) formulation for Polish raw materials and to demonstrate the claimed pollution reducing benefits of its use in residential heating. Subsidiary goals were to test this fuel in larger scale facilities and to support the commercial tasks by producing Clean Fuel for use in the by-product market test. These goals were accomplished. Use of Clean Fuel in residential heating reduced particulate matter and total hydrocarbons emissions from ceramic home heating stoves compared to the combustion of premium chunk coal by 56 and 39%, respectively. It also results in higher thermal efficiency. An optimum formulation using Polish raw materials was determined and used in the production of Clean Fuel for the by-product market test. This fuel was also tested in a hand-stoked fixed grate boiler and 3 travelling grate boilers of varying size.