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McDermott Technology, Inc. (MTI) and Catalytica Advanced Technologies (CAT) have teamed to develop compact fuel processors for fuel cell electric vehicle applications. Electric vehicles, powered with proton exchange membrane (PEM) fuel cells operating on reformed liquid fuels such as gasoline are one of the key applications. MTI and CAT are developing a compact, autothermal fuel processor system designed for on-board operation. As part of this development we are evaluating various catalyst compositions and performing extensive catalyst characterization testing. In addition, proprietary liquid-phase, desulfurization technologies are being developed to facilitate removal of organically bound sulfur. This work will be followed by a 20 kWe breadboard gasoline fuel processor demonstration. The 20 kWe system will demonstrate integrated performance and provide design validation necessary for testing of a compact 50 kWe fuel processor in 2000.