The report covers the final 3 years of a 9-year program to evaluate the Chemically Active Fluid Bed (CAFB) process for gasification and desulfurization of liquid and solid fuels in a fluidized bed of hot lime. A range of alternative fuels, including three coals and a lignite, were gasified in a 3 MWt pilot scale gasifier, and small scale batch tests were conducted, all in support of the design of a demonstration plant to be retrofitted to a 20 MWe natural-gas-fired power generation plant. Direct assistance was given to the start-up and troubleshooting of the 20 MWe unit, and a design study was completed on the potential use of a pressurized CAFB process to fire a high efficiency gas turbine. The pilot plant studies demonstrated the feasibility of simultaneous gasification and desulfurization of a range of coals and a low grade lignite. Best results were obtained using a cannel coal from New Mexico. Batch and continuous gasification tests gave much useful process and equipment information for the 20 MWe design, and the pressurized CAFB studies indicated potential for commercial viability once gas turbine inlet temperature can be raised to 1427 C.