This first quarter report of 2003 describes progress on a project funded by the U.S. Department of Energy (DOE) to test a hybrid sulfur recovery process for natural gas upgrading. The process concept represents a low cost option for direct treatment of natural gas streams to remove H(sub 2)S in quantities equivalent to 0.2-25 metric tons (LT) of sulfur per day. This process is projected to have lower capital and operating costs than the competing technologies, amine/aqueous iron liquid redox and amine/Claus/tail gas treating, and have a smaller plant footprint, making it well suited to both on-shore and off-shore applications. CrystaSulf(trade name) (service mark of CrystaTech, Inc.) is a new nonaqueous sulfur recovery process that removes hydrogen sulfide (H(sub 2)S) from gas streams and converts it into elemental sulfur.