The Florida based company said the initial testing of the co-combustion technology had shown a significant reduction in greenhouse gas emissions as well as greater efficiency from burning coal.
Testing and validation work is now being overseen by a from a well-respected coal technology research center, the company added.
Chief executive Ermanno Santilli, in a statement, said: "Testing has consistently demonstrated that using MagneGas2 in a co-combustion environment will produce a significant reduction in emissions and could make the abundance of coal as a usable resource more acceptable again.
"We are working closely with our Joint Venture partners in the U.S. and Australia to complete the pilot phase and we anticipate the conclusion of our testing by year's end.
"We fully expect the results to continue to be significant in terms of coal burning efficiency, reduction of greenhouse gases and overall business potential for MagneGas."
The group's eponymous product, MagneGas, is a fuel created from renewably sourced liquid waste and it is currently sold as an alternative to acetylene.
In this co-combustion application the company says that coal flue gas - or smoke - can be transformed by igniting it withMagneGas.