The feasibility of using fluidized-bed combustors in power and steam plants is being evaluated. The concept involves burning fuels such as coal in a fluidized bed of either a naturally occurring, calcium-containing limestone or dolomite or in a synthetically prepared calcium-containing stone. The calcium oxide in the stone reacts with the sulfur released during combustion to form calcium sulfate, which remains in the bed, thus decreasing the level of SO/sub 2/ in the flue gas. Levels of NO/sub x/ in the flue gas are also low. The effect of operating variables and type of stone on the levels of SO/sub 2/ and NO/sub x/ is being determined. Behavior of trace elements during combustion has been preliminarily evaluated. The properties of a fluidized bed at minimum fluidization at different temperatures and pressures have been determined. The CaSO/sub 4/ produced in the combustion process is regenerated to CaO for reuse in the combustor by reductive decomposition at 1095/sup 0/C (2000/sup 0/F). The effects of operating variables on sulfur release during regeneration are being evaluated. Another regeneration process, solid-solid reaction of CaSO/sub 4/ with CaS, is also being investigated. Fundamental investigations of the kinetics of sulfation and regeneration reactions for the natural and synthetic stones are continuing. A model for the sulfation reaction is presented. The status of the new combustor andancillary regenerator equipment is discussed. (auth).