This report documents the continuing effort at the US Department of Energy/Morgantown Energy Technology Center (METC) to develop a hot-gas desulfurization process for coal-derived gas, primarily for application to molten carbonate fuel cells. Metal oxide sorbents were tested on lab-scale test equipment, and it was determined that scale-up of the process was warranted. A larger, skid-mounted test unit was therefore designed, constructed, and installed on a sidestream of the DOE/METC fixed-bed gasifier. A first series of tests was conducted during Gasifier Run 101. These tests served to shake down the test unit, and provide data on the performance of the test unit operating on coal-derived gas. Overall, the process operated well on fixed-bed, air-blown gasifier gas. Sulfur levels in exit dry gas were reduced to less than 10 ppM. Regeneration appears to restore the sulfur-removing capacity of the sorbent. Sorbent integrity was maintained during the test period, which incorporated three sulfidations. It is recommended that treatment of the regeneration offgas be investigated, and that testing and development of a system to reduce the sulfur in this gas to elemental sulfur be initiated. In addition, it is suggested that a multiple reactor system be planned for continuous operation, to allow for long-term tests of downstream users of desulfurized gas. 7 references, 18 figures, 9 tables.