There is considerable current interest in the use of coal as a feedstock for making liquid fuels which can potentially replace imported oil and oil products. In some places, this could increase the security of supply of these liquid fuels which are mainly used for transportation.

There are major drivers which support a CTL programme in countries that have substantial coal resources, are net importers of oil and which have a policy framework encouraging energy independence. There are, however, significant cost implications if coal is used as the feedstock for providing transport fuels, and unless appropriate actions are taken, the CTL route has a much greater environmental footprint than conventional oil recovery and refining.

The various forecasts and projections indicate steadily increasing demand for liquid transport fuels, and tend to boost the perceived need for their production from different sources. However, active demand side management could reduce the increase, and even achieve a reduction in use in some countries, thus balancing an increase in others.

This study discusses both direct and indirect coal liquefaction and looks at proposals for hybrid plants. It considers the effects of coal rank and type and the range and properties of the liquid products produced. Research, pilot and demonstration programmes are reviewed, together with a description of current production units – and of plants which are planned or under construction. The review discusses potential developments, some of which have links with polygeneration. It includes country-by-country reviews of current CTL plans, together with a review of the potential environmental footprint of CTL activities. Finally there is a consideration of demand side aspects of the use of liquid transport fuels, and an economic overview of the implications of the large-scale use of CTL technologies.

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