Also known as "Coal Liquifaction" this process combines water and coal at 700 deg.C to produce carbon monoxide & hydrogen. The hydrogen is then combined with coal at a lower temperature of 400 deg.C to produce a liquid similar to petroleum. During WWII Germany produced all of its fuel this way, and South Africa also currently does this. It has been estimated that producing gasoline, diesel & jet fuel using this process will become economical should the cost of oil rise above $30-35 per barrel.

US DOE Office of Fossil Energy - Clean Coal Technology Compendium

I haven't heard much about this, and I am guessing that the lack of publicity will make it a very attractive alternative to politicians, versus other technologies like hydrogen, fuel cells, etc.

Comments?