xTL Fuels

Synthetic liquid transportation fuels, collectively known as xTL fuels, are produced through specialized conversion processes. These production methods, including the Fischer-Tropsch process, produce fuels from carbon-based feedstocks, such as biomass, coal, or natural gas, and can yield many useful fuels, including gasoline, diesel, ethanol, and methanol.

Liquid Fuels from Coal and Natural Gas

Liquid fuels from coal and natural gas are produced primarily through the Fischer-Tropsch process. Producing liquid fuels from coal and natural gas can result in increased greenhouse gas (GHG) emissions, but carbon sequestration and electricity co-generation can mitigate this disadvantage.

In addition, coal can be converted directly into liquids through liquefaction. The Bergius hydrogenation process is a primary method that involves reacting low-grade coal with hydrogen at a high temperature and pressure to produce liquids that can be refined into synthetic fuels. China, India, and the Philippines are studying and deploying direct liquefaction technologies.

Liquid Fuels from Biomass

Liquid fuels converted from biomass feedstocks are produced primarily through two processes:

  • Gasificationheating biomass by partial oxidation to produce synthesis gas (syngas).
    Biomass is converted to gas by heating it in the presence of about one third of the oxygen needed for combustion. The resulting syngas is a mixture of carbon monoxide and hydrogen that can be burned to produce electricity or converted into hydrocarbons (such as gasoline and diesel), alcohols, ethers, or chemical products. The petroleum and petrochemical industries have developed commercial processes for converting syngas into fuels and chemicals.

  • Pyrolysisheating biomass in the absence of oxygen to produce liquid oil.
    Sometimes called bio-oil, pyrolysis oil can be burned like fuel oil or refined into chemicals and fuels. Upgrading pyrolysis oil to high-quality hydrocarbon fuels has been demonstrated at a non-commercial scale.

Both processes use heat and chemical reactions to convert biomass into fuels, chemicals, and power. The products are cleaner and more efficient than the original biomass. These processes can also convert biomass, such as wood and agricultural residues, that is difficult to handle with other biofuel production processes.

Liquid fuels from biomass differ from fuels produced through fermentation and other processes that use only part of a biomass feedstock, such as those that produce ethanol, biobutanol, and biodiesel.


xTL fuels can be alternatives to conventional transportation fuels. The benefits of xTL fuels include:

  • More Compatibility—xTL fuels are compatible with current diesel- and gasoline-powered vehicles and fuel distribution infrastructure. xTL fuels do not require new or modified pipelines, storage tanks, or retail station pumps.

  • Increased Energy Security—Using the United States’ vast coal reserves and natural gas to produce transportation fuels would reduce U.S. reliance on imported petroleum and increase energy security. xTL fuels produced domestically can also create jobs in the United States.

  • Improved Vehicle Performance—Liquid fuels from natural gas and Fischer-Tropsch produced diesel (F-T diesel) can provide similar or better vehicle performance than conventional fuels.

  • Reduced Exhaust Emissions—With F-T diesel, emission-control catalysts can reduce nitrogen oxide emissions, and little or no particulate emissions will exist. This is because F-T diesel has low sulfur and aromatic content, and there are fewer hydrocarbon and carbon monoxide emissions.

  • Fewer GHG Emissions—Fuels converted from stranded natural gas reserves, which are otherwise not economical to recover, require no gas flaring and produce fewer GHG emissions. Fuels from biomass can produce fewer GHG emissions because carbon dioxide captured during feedstock growth offsets carbon dioxide emissions from burning fuel.

Research and Development

Gas-to-liquid and coal-to-liquid production processes are in relatively advanced stages of development and in commercial production. Biomass-to-liquid processes are less mature. For all three processes, research and development efforts are improving the efficiency and economics of production as well as quantifying costs and benefits of production and use in vehicles.

Companies involved in xTL fuel production include Sasol and Shell. Since the late 1990s, most major oil companies have announced plans to investigate producing diesel through gas-to-liquid processes. The U.S. Department of Energy (DOE) and several national laboratories support xTL fuel production research and development.

More Information

Learn more about xTL fuels from the links below. The Alternative Fuels Data Center (AFDC) and DOE do not necessarily recommend or endorse these companies (see disclaimer).

The AFDC also provides a publications search and a database of related links.