The goal of this program is to evaluate a novel process concept for mild gasification of coal using an internal recirculating catalyst. This report describes progress during the first quarter of the program. The work is divided into three major tasks: laboratory-scale tests, bench-scale tests, and proof-of-concept tests and evaluation. The objectives of the individual tasks are described: The objective of the laboratory-scale tests is to obtain detailed information on the effects of the selected internal recirculation catalyst, CsOH, on the products of mild coal gasification using a pyrolysis-gas chromatographic mass spectrometry system. Three different types of coals (Illinois No. 6 coal, Wyodak subbituminous coal, and North Dakota lignite) are to be tested; the effect of operating conditions on product quality will be investigated. The objective of the bench-scale tests is to conduct larger scale tests (than those of Task 1) on the effects of the CsOH catalyst on the products of mild coal gasification. These tests will be conducted with the three selected test coals in a nominal 2-inch-ID fluidized-bed gasifier. The objective of the proof-of-concept tests and evaluation, which is subject to the approval of DOE/METC to proceed, is to conduct large-scale testing of the effect of the internal recirculation catalyst on mild coal gasification and process design and economic studies. These large-scale tests are to be conducted in an existing 8-inch-diameter gasifier.