For the past decade, the Department of Energy (DOE) has sponsored projects to develop diesel and gas turbine engines capable of operating on low-cost, coal-based fuels. Much of the current work addresses the use of coal-water fuel (CWF) in diesel and turbines, although there is some work with dry coal feed and other coal fuels. Both the diesel and gas turbine portions of the program include proof-of-concept and support projects. Specific highlights of the program include: engine tests and economic analyses have shown that CWF can replace 70% of the diesel oil used in the duty cycle of a typical main-line locomotive; A. D. Little and Cooper-Bessemer completed a system and economic study of coal-fueled diesel engines for modular power and industrial cogeneration markets. The coal-fueled diesel was found to be competitive at fuel oil prices of $5.50 per million British thermal units (MBtu,7557 ); Over 200 hours of testing have been completed using CWF in full-scale, single-cylinder diesel engines. Combustion efficiencies have exceeded 99%; Both CWF and dry coal fuel forms can be burned in short residence time in-line''combustors and in off-base''combustors with a combustion efficiency of over 99%; Rich/lean combustion systems employed by the three major DOE contractors have demonstrated low NO{sub x} emmissions levels; Contractors have also achieved promising results for controlling sulfur oxide (SO{sub x}) emissions using calcium-based sorbents; Slagging combustors have achieved between 65 and 95% slag capture, which will limit particulate loading on pre-turbine cleanup devices. For many of the gas turbine and diesel applications emission standards do not exist. Our goal is to develop coal-fueled diesels and gas turbines that not only meet all applicable emission standards that do exist, but also are capable of meeting possible future standards. 34 refs., 9 figs., 5 tabs.