Under a previous contract with Morgantown Energy Technology Center (METC), DOE contract No. AC21-84MC21108, CTC built and tested a 1500 lb/day, fixed bed batch Mild Gasification Development Unit (MGU). Testing completed under the previous contract showed that good quality hydrocarbon liquids and char can be produced in the MGU. However, the MGU was not optimized. The primary objectives of the current project were to optimize the MGU and determine the suitability of using the char as a replacement fuel for coal or coke in three types of commercial applications: industrial/utility boiler; stoker boiler; and foundry blast furnace. To optimize the MGU, facility modifications were made to the MGU in order to solve the major problems encountered during the previous contract and a series of parametric test runs were carried out in search of the optimum operating conditions. The major modifications include the reactor diameter size, coal feeding system, coal liquid condensing system, reactor tube support system, and the char chamber design. The operating parameters tested during the process studies to gauge their individual effect on product quality and yield were coal feedstock, final coal bed temperature, coal particle size, sweep gas, and coal additive. The operating pressure was essentially atmospheric -- {approximately}1 psig vacuum to {approximately}2 psig pressure. 8 refs., 22 figs., 37 tabs.