The overall project objective is the development and validation of an innovative combustion system, based on a novel coal preheating concept prior to combustion, that can reduce NO(sub x) emissions to 0.15 lb/million Btu or less on utility pulverized coal (PC) boilers. This NO(sub x) reduction should be achieved without loss of boiler efficiency or operating stability, and at more than 25% lower levelized cost than state-of-the-art SCR technology. A further objective is to make this technology ready for full-scale commercial deployment by 2002-2003 in order to meet an anticipated market demand for NO(sub x) reduction technologies resulting from the EPA's NO(sub x) SIP call.