Alternative processes for converting coal to liquid products and their stage of development are outlined. The merits of hydrogenationprocesses in general, and the solvent refined coal process in particular, are stressed. Bench scale experimental hydrogenation procedures used by the Australian Coal Industry Research Laboratories Ltd._x000D_
(ACIRL) to study the liquefaction of Australian coals and correlations between properties of such coals and their conversion to liquid products are described. Factors involved in assessing investment and operating costs for modern hydrogenation based coal refineries of different capacities are described with reference to a recent study undertaken in N.S.W. The significance of coal properties such as yield and yield structure of total liquid products and how they and other factors can influence the economics of the coal refining operations are discussed.