The gasification of finely‐divided peat (30‐micron and 48‐micron sizes respectively, and 11.4% moisture) was studied in a reactor 30.5‐cm ID and 178‐cm high, in the presence of a plasma flame consisting of nitrogen and steam, at an initial temperature of 4000 K, decreasing to 1200 K in the reaction zone. For a carbon‐to‐steam molar ratio of 1.37, a conversion of 81% of the carbon was achieved, yielding a gas analyzing 43% H2, 44% CO, 8% CO2, 4% CH4 and 1% C2H6, with a calorific value of 266 kJ/g mol (319 Btu/ft3). The results indicated that higher temperatures and a lower C/H2O ratio were required to achieve near total carbon conversion.