This report summarizes works conducted under DOE Contract No. DE-FC26-05NT42448. The work scope was divided into two categories - (a) experimental program to pretreat and refine a coal derived syncrude sample to meet transportation fuels requirements
(b) system analysis of a commercial scale direct coal liquefaction facility. The coal syncrude was derived from a bituminous coal by Headwaters CTL, while the refining study was carried out under a subcontract to Axens North America. The system analysis included H{sub 2} production cost via six different options, conceptual process design, utilities requirements, CO{sub 2} emission and overall plant economy. As part of the system analysis, impact of various H{sub 2} production options was evaluated. For consistence the comparison was carried out using the DOE H2A model. However, assumptions in the model were updated using Headwaters database. Results of Tier 2 jet fuel specifications evaluation by the Fuels & Energy Branch, US Air Force Research Laboratory (AFRL/RZPF) located at Wright Patterson Air Force Base (Ohio) are also discussed in this report.