Coal is an attractive fuel for railroad locomotives because of its domestic abundance and low cost per unit of heat. One restraint in coal as a locomotive fuel is environmental pollution. Considering these conflicting conditions of attractiveness and difficulty In using coal as a fuel, it becomes quite important how the coal is handled and converted to heat for locomotive power. A study of heat engines for using coal, leads us to conclude that a gasified coal producer is the best method for using coal. We have examined the major subsystems involved: the gas producer, gas cleaner, controls, waste disposal, engine and the electric drive. The one area needing further research and development is-the gascleaning subsystem. We are proposing to develop the chemistry and handling system necessary to fit a gas-cleaning system on a gasified coal locomotive. A serious effort is required to insure that sulphur in the coal does not end up in the engine exhaust. Once a gas-cleaning system can be demonstrated that controls this pollutant, there is substantial evidence that locomotive manufacturers, railroads and heavy equipment fabricators will become investors and purchasers. This locomotive design has a potential to reduce railroad fuel costs by 60% (more than $2 billion annually) and allow the industry to eliminate its dependence on foreign oil supplies. If the design proves feasible in the preliminary analysis of Phase I and in testing of Phase II, preliminary inquiries indicate the railroad industry would support the remaining development effort.