During this quarter work was continued on characterizing the stability of layered composite membranes under a variety of conditions. Membrane permeation was tested up to 100 hours at constant pressure, temperature, and flow rates. In addition, design parameters were completed for a scale-up hydrogen separation demonstration unit. Evaluation of microstructure and effect of hydrogen exposure on BCY/Ni cermet mechanical properties was initiated. The fabrication of new cermets containing high permeability metals is reported and progress in the preparation of sulfur resistant catalysts is discussed. Finally, a report entitled Criteria for Incorporating Eltrons Hydrogen Separation Membranes into Vision 21 IGCC Systems and FutureGen Plants was completed.