The work accomplished during the first six-month period of Phase II consisted of process laboratory experimentation and computer modeling of the process. Work on demonstration unit design and fabrication has awaited the results of these two tasks. Now that data are available from the laboratory phase, some of the design work can be initiated. The laboratory work has included equipment development, shakedown operations and actual process runs with the laboratory scale units. The computer modeling has been delayed by some logistical issues. Prof. Ruthven, project modeling consultant, moved from the University of New Brunswick to the University of Maine during the early stages of Phase II. He was still able to take delivery of Prof. Alpay`s gProm computer simulation package (from Imperial College in the UK) during that period, but was not able to make any runs with the system. The University of Maine`s Sun Workstations were not totally compatible with the gProm program. It has now been installed at the University of New Brunswick and Prof. Ruthven will be able to make simulation runs at that University. Results will-be available in the immediate future.