Requirements for and costs of product(s) upgrading (e.g., from low Btu-content to high), if any;

Amount and characteristics of products and by-products

including relative values and markets;

o Considerations pertaining to transportation, distribution, storage, and other infrastructure aspects;

o Availability of a manufacturing infrastructure for the proposed technology;

o Expected technology characteristics which would facilitate commercial plant construction, such as use of shop fabrication, modular construction, siting flexibility, etc.;

Potential role of environmental regulations, both existing and potential, more stringent, future regulations, in affecting the commercial market potential for the clean coal technology. Identify the specific situations in which environmental factors and regulations will be critical to

the marketability of the technology;

Non-environmental regulatory aspects affecting marketability (e.g., economic regulations);

o Capital requirements and financing alternatives for a
typical installation as well as for the total projected
market penetration;

Other pertinent factors affecting marketability.

(c) COMMERCIALIZATION PLAN

The proposal must provide a discussion of how the clean coal technology will be commercialized in the 1990's. The discussion should define the proposer's role and the role of other parties in the commercialization process. Also, the discussion should be in sufficent detail to show how the proposed demonstration fits into the commercialization plan.

The plan must address such factors as financing, licensing,
engineering, manufacturing, and marketing required to achieve
commercialization. It should describe how any needed changes
in infrastructure (including distribution, equipment servicing,
etc.) that are necessary to achieve the commercialization will
be accomplished. Include a timetable for commercial development.
The commercialization plan must be consistent with the rate of
market penetration described in the "Marketability" section.

2.2 Discussion of Demonstration Project Factors:

The purpose of this discussion is to document the technical readiness,
the adequacy and appropriateness of the demonstration, the environ-
mental implications, and the probability of successful demonstration
of the proposed technology. The technical proposal (Volume II)
must contain a narrative discussion of the demonstration project
factors described below:

(a) TECHNICAL READINESS

The proposal must discuss and provide evidence of the readiness
of the technology for scale-up to demonstration size. The
proposer must document work to date on the technology, includ-
ing a discussion of the data collected at the prior steps in
its process development. The size of process work to date,
including throughput, conditions of operation, and duration of
testing, must be provided including, for example, the identi-
fication of key process transitions from bench to pilot scale
and from batch to continuous operation. The key data and
results obtained must be provided to demonstrate that the

basis exists for scale-up. A further discussion must be
provided to indicate the degree of scale-up required to go
from the current state of knowledge about the technology to
the demonstration scale proposed. The rationale for choosing
the scale of the demonstration must be provided. In this
element, it is essential that the proposer identify all signi-
ficant items of equipment and processes that have not operated
at the proposed scale and conditions of operation to be encount-
ered in the demonstration project. The technical risks inherent
in the demonstration project that could affect its success
must be identified, and the discussion must address the proposed
mitigating measures and likelihood of overcoming the risks.
The offeror should also provide any other discussion or infor-
mation that shows that the adequacy, availability, suitability,
and quality of the data and analysis support the decision to
advance the technology to demonstration scale.

(b) ADEQUACY AND APPROPRIATENESS OF DEMONSTRATION

The demonstration project need not be a complete, full-scale commercial plant (first-of-a-kind), but may, for example, represent a single train in a multi-train plant, or may be of less than commercial scale. It need not include all the unit operations that would be required in a commercial plant if

evidence is submitted showing that these components or subsystems have already been successfully demonstrated or are widely used commercially. To support these decisions and other decisions regarding the offeror's choice of project, show specifically how the proposed project is adequate and appropriate for contributing to the enhancement of technologies, techniques, or processes, or to provide new information to enable the private sector to make rational commercialization decisions.

As part of this discussion, the proposer must indicate how this project relates to other similar work with specific identification of other demonstrations or commercial technologies that are similar. It must be made clear that this demonstration is not duplicative of currently available technologies, or of previously conducted or ongoing demonstrations. The proposal must address the anticipated benefits of the proposed project and show how it expands or enhances information and experience obtained in the above commercial or demonstration activities.

A discussion must be provided to indicate the degree of scaleup anticipated to be required to move from the demonstration scale to a commercial offering. The proposer must identify the technical, economic, and environmental data needed from the demonstration project which will be required to move to