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A study has been made of the extent to which a least squares procedure may be usefully employed in estimating the parameters of a suitable model describing the dynamic characteristics of a steam generating plant. The procedure is one in which the parameters of the model equation are chosen by a direct calculation to minimise the mean squared error between the derivatives of the measured output variables and the derivatives as calculated from the right hand side of the model equations. The results suggest that models may be structured with a sufficient number of variables and non-linearities to be used in modelling steam generators.