For year 2004 the project will concentrate on two targets for the Azep demonstration:- production of ceramic components (heat exchangers, MCM membranes, gas distributors and sealing material) ), suitable for testing in the pilot plant through a geometric scale-up sequence to the full-size thermal duty of 100 kW - construction and erection of the pilot plant with the aim to complete mechanical construction 1. Q 2005.Due to promising advances within functional ceramics in other, parallel projects we are further suggesting to widen the scope for the pilot plant. This is to accommodate options to test ceramic modules for hydrogen-, oxygen-, syngas- and high temperature heat exchanger type of applications. Increased attention to hydrogen energy and compact, gas based hydrogen production technologies is one driver for expanding the experimental test capabilities. This expanded scope can be done without significant consequences regarding the basic pilot plant cost and time schedule. The result is thus a Multi Purpose Ceramic Membrane Pilot Plant facility.A work package has also been included to make lab. scale qualification of hydrogen membranes for hydrogen production.