Analysis and evaluation of Sub-Scale Unit operational and test data has not shown any cause to expect unsuccessful operation of the Demonstration Plant. Major changes to the Demonstration Plant based on the SSU results significantly improve the prospect for a smooth shakedown and startup of the plant. Modification of in-bed heat transfer to compensate for changes in the design heat transfer rates and heat release distribution has been accomplished. Provisions to vary reinjection rates during operation over the range of 0 to 90 percent maximum expected flow rates and control dust loadings have been added. Redesign of the bed air distribution (grid plates), allowing for free thermal expansion, has been included. Improvements to the design of instrumentation probes to provide reliable sensing for control valves were provided. In addition, the operation of the SSU has verified that the fluidized bed combustion process as designed for the Demonstration Plant should achieve the required performance. All major components of the Demonstration Plant have been specified. Fabrication releases have been issued for critical items. The design phase of the project is near 95% completion. Construction is well underway. Concrete work is more than 90% complete. Structural steel erection has started, as well as silo fabrication. The facility should be enclosed with roofing and siding before the arrival of severe winter weather. A test program has been prepared and submitted to DOE. Arrangements are being made for operational manpower and test equipment.