Coal to liquids is a term describing processes for converting coal into liquid fuels such as gasoline and diesel. Currently, the major coal-to-liquids production process is the Fischer-Tropsch process, involving conversion of coal into gas and then into liquids. Several processes that convert coal directly into liquids (direct liquefaction) also exist.
Coal-to-liquids processes have the potential to produce a range of useful fuels and chemicals. These include transportation fuels such as gasoline, diesel, and methanol. Producing liquid transportation fuels from coal using the Fischer-Tropsch process has been demonstrated on a large scale.
One major benefit of coal-to-liquids fuels is their compatibility with currently existing vehicle technologies and fuel distribution systems. Coal-derived gasoline and diesel could be transported through existing pipelines, dispensed at existing fueling stations, and used to fuel today's gasoline- and diesel-powered vehicles.