In the entrapment/microencapsulation of labile biological materials, the process of calcium alginate gel formation has, to date, been restricted to the use of relatively small-batch type procedures, with the consideration of residence time in contact with CaC12 being the critical factor in limiting scale-up of the process. Another major commercial barrier is how to provide scale-up production of small alginate gel balls, which are necessary to support cell respiration. The objectives of the proposed Phase II program are 91) to develop a full-scale prototype of a process for the continuous removal of calcium alginate gels from a calcium chloride gelling solution and their subsequent introduction into a biologically isotonic sodium chloride solution and (2) to develop a droplet generator that can produce gel balls having diameters of about one-third to one-fifth of present gel ball former devices, while at the same time increasing the production rate. the work involves the design and testing of a full-scale continuous washing system that will be tested at Damon Biotech and the development of a gel ball generator capable of producing small droplets of about 100- 200 microns.