Coal liquefaction is the conversion of coal to produce synthetic fuels. To convert coal to synthetic fuels, a process has been developed that requires the coal to be in contact with a hydrogen environment at high temperatures and pressures.

The major objective of coal liquefaction is to produce synthetic oil to supplement the natural sources of petroleum. Liquid and solid products from coal can be used for fueling transportation vehicles, providing fuels for power generation, and yielding raw materials for chemicals. Coal-liquefaction plants will be expensive, but their products should be very competitive when world oil production declines.

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