The developed model included drying lignite, its gasification with CO2/O-2 mixt. In a circulating fluidized bed reactor, oxy-combustion of the produced char, syngas processing (conversion of MeH and tars, H-2 enrichment, removal of H2S, CO2 and Hg, MeOH synthesis, compression of sepd. CO2, S recovery), heat recovery and power generation. The model was used to prep. the process heat and mass balance sheets and to develop a technol. design of a demonstration plant together with feasibility study of com. scale plant.