The present project involves the second phase of research on a new concept in coal-water fuel (CWF) atomization that is applicable to burning in small combustors. It is intended to address the most important problem associated with CWF combustion; i.e., production of small spray droplets in an efficient manner by an atomization device. Phase 1 of this work was successfully completed with the development of an opposed-jet atomizer that met the goals of the first contract. Performance as a function of operating conditions was measured, and the technical feasibility of the device established in the Atlantic Research Atomization Test Facility employing a Malvern Particle Size Analyzer. Testing then proceeded to a combustion stage in a test furnace at a firing rate of 0.5 to 1.5 MMBtu/H.