A feasibility analysis will be conducted on a novelapproach to coal liquefaction that produces high liquid yields andpromises low cost. The process approach promises an overall liquidyield of 65% or greater from a sub-bituminous coal. Ratios ofliquid to hydrocarbon gas are greater than 10:1, resulting in lowhydrogen consumption. The theoretical basis and laboratoryevidence are now sufficiently developed to warrant examination ofthe technology implications of this promising coal liqueficationapproach. The Phase I evaluation consists of the design of aconceptual commercial facility, an assessment of the environmentalcharacteristics of the process, and a cost and profitabilityprojection. The feasibility analysis will identify those areas oftechnical, market, and economic uncertainty that require furtherstudy (Phase II) before private investment can be attracted on asignificant level (Phase III).Anticipated Results/Potential Commercial Applications as described by the awardee:Successful development of the proposed liquefactionapproach will make possible a new and novel technology option forproduction of liquid fuels from coal. The approach shows promisefor high yield, low cost conversion of coal to liquids. The PhaseI study will provide the basis for economic evaluation of thetechnology.