The report summarizes the current technical status of circulating fluidized-bed combustion (CFBC). Companies that are involved in investigating this technology and/or developing commercial systems are discussed, along with system descriptions and available cost information. CFBC is a second-generation FBC system that is well underway toward commercialization in the U.S. The CFB operates at higher fluidization velocity, lower mean bed particle size, and higher recirculation rate than conventional FBC. Probable advantages of CFBC over traditional FBC include: more flexibility in fuel selection, reduced number of fuel feed points, higher combustion efficiency, better calcium utilization, and lower NOx emissions. Potential process limitations that must still be evaluated, however, include equipment erosion due to the more severe operating conditions, separation of bed material from effluent gas, severity of cyclone separation equipment design, and power requirements for process and auxiliary equipment operation. Battelle Development, Lurgi, and Pyropower are the major companies involved in demonstrating the commercial viability of this process in the U.S. Lurgi and Pyropower are basing their CFB systems on technology already commercially demonstrated in Europe; after pilot-proving its process, Battelle is building the first commercial U.S. plant.