The report describes the development of the SO2 Acceptor Process, an atmospheric-pressure, coal-fired fluidized-bed boiler concept for stream and power generation. Coal is burned in a fluidizied bed of crushed lime in the boiler's primary combustion zone; the partially sulfated lime is continuously regenerated (by reductive decomposition) in another zone. High combustion efficiencies are achieved by recycling, to a Carbon Burnup Cell, the carbon-containing flyash which is carried out of the primary combustion zone. Experimental work was conducted for the purpose of demonstrating system operability, including: high degrees of sulfur removal in the primary combustion zone; high levels of SO2 in the off-gases from the regeneration zone, suitable for sulfur recovery; and high combustion efficiencies. Preliminary designs and cost estimates are presented for 30-MW and 300-MW boilers.