The objective of the program is to conduct bench scale studies to evaluate a process using microwave irradiation of caustic treated coal to remove sulfur and ash from coal. The program is organized into three tasks: equipment design and installation, shakedown testing, and process testing. This report covers and results from the design activities during the report period and includes the results from design reviews conducted by the DOE TPO and by a TRW review committee, a description of the microwave reactor, identification of the major pieces of equipment selected for pretreatment and post-treatment of the coal, and results from the performance test of candidate equipment for metering and feeding the coal/caustic mixtures to the microwave reactor. 3 tabs.