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 NOx emissions to 0.15 lb/million Btu or less on utility pulverized coal (PC) boilers. This NOx 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 NOx reduction technologies resulting from the EPA's NOx SIP call.