Work on the design and procurement of equipment for the wet-carbonization process research unit (PRU) was essentially completed this quarter. Shakedown testing of the individual pieces of equipment has been initiated. The PRU is designed to process about 100 lb/h of as-received coal. The main reactor will be able to operate at temperatures and pressures up to 650/sup 0/F and 2300 psig, respectively. One batch wet-carbonization test was conducted this quarter with North Dakota Indianhead lignite, water, and sulfuric acid. The objective of this test was to determine the effect of this additive on the wet-carbonization characteristics. The results of this test showed no significant effects when compared with those of tests conducted without acid at similar conditions. To date, twenty-seven batch wet carbonization tests have been conducted at temperatures, pressures, and residence time in the range of 400/sup 0/ to 650/sup 0/F, 250 to 3300 psia, and 0 to 60 minutes, respectively, with coals from North Dakota (Indianhead and Center lignites), Texas (South Hallsville lignite), and Montana (Rosebud subbituminous). Fourteen char gasification tests were performed this quarter in the thermobalance unit. The results indicated that wet carbonization reduced the relative reactivity of the coals treated and that the higher the wet-carbonization temperature, the more the reduction in the relative reactivity.