To verify the clean coal technology to be diffused in China and consolidate its diffusion basis, demonstration project of circulating fluidized bed boiler was conducted through the cooperation with China which is positive in its introduction. This report describes its characteristics. Coal and limestone are supplied in a lower part of combustion chamber, and are mixed with circulating ash by fluidized air for combustion. Densely fluidized bed the same as the bubbling fluidized bed is formed in the lower part of combustion chamber, which provides excellent stability in ignition and combustion. Particles including ash, char and limestone formed during the combustion are discharged into the cyclone through the convection heat transfer part at the outlet of combustion chamber with the combustion gas flow. Since the gas temperature is lowered to 400 to 500degC at the convection heat transfer part, troubles of the ash circulating system can be prevented. The combustion gas separated from ash at the cyclone is discharged through the heat exchanger and precipitator, and the collected ash is returned to the lower part of combustion chamber. In FY 1997, design, fabrication, procurement/inspection, field survey/meeting, survey of visitors/meeting, and education were carried out. 4 figs., 4 tabs.