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The fuel and environmental problems in the heat power industry of Ukraine have been analyzed for conventional flare combustion of low-grade coal in boiler units of TPPs and cogeneration plants. Data are given for more effective technologies of firing such coal, viz. thermo chemical treatment of part of the pulverized coal mixture with natural gas combustion products, employing electric-arc and microware plasma devices, as well as technologies with different modifications of the fluidized bed. The hylrogen-oxygen technology of firing low-grade coal has been substantiated as an alternative one. It allows increasing the fuel efficiency and the life of power unots.