The Fusion Plasma Physics Department of the Centre for Energy Research, Budapest, Hungary has been developing a test laboratory for ITER SPI technology. The setup consists of an in-house designed cryogenic pellet injector, fast valve, conceptual test of the ITER Optical Pellet Diagnostic (OPD) and a diagnostic chamber where the pellet shattering process can be studied. Up to now 19 mm diameter Hydrogen pellets have been successfully accelerated to 500-800 m/s velocity, shattered and diagnosed. Preparations have been done for Ne, D and mixed pellet acceleration and for the largest, 28.5 mm diameter pellets. Pellet desublimation and acceleration code modelling match the experiments reasonably and give guidance for the final pellet recipes for ITER. The OPD demonstrated diagnostic possibilities compatible with the ITER environment. The first shattering data indicate the necessary development directions for the final ITER technolgy.