This paper very briefly summarizes progress in the demonstration of a small (up to 6 MWe), environmentally acceptable electric generating system fueled by indigenous fuels and waste materials to serve power distribution systems typical of Alaskan Native communities. Two detailed appendices supplement the report. The project is focused on two primary technologies: (1) atmospheric fluidized bed combustion (AFBC), and (2) coalbed methane and coal-fired diesel technologies. Two sites have been selected as possible locations for an AFBC demonstration, and bid proposals are under review. The transfer of a coal-fired diesel clean coal demonstration project from Maryland to Fairbanks, Alaska was approved, and the environmental assessment has been initiated. Federal support for a fuel cell using coalbed methane is also being pursued. The appendices included in the report provide: (1) the status of the conceptual design study for a 600-kWe coal-fired cogeneration plant in McGrath, Alaska; and (2) a global market assessment of coalbed methane, fluidized-bed combustion, and coal-fired diesel technologies in remote applications.