Synthetic liquid fuels

An economical, efficient process is provided employing coal, particularly subbituminous coal, as a fuel source for the production of distillate fuels, methanol, and methane. A hydroliquefier is operated under severe conditions to provide a high net yield of light distillates which are separated by distillation. The vacuum residue, which is produced above, is transferred as a slurry to a partial oxidation gasifier where synthesis gas is produced as feedstock for methanol or methane synthesis. Gaseous hydrocarbon contaminants are separated and used to generate additional synthesis gas, or to supply other fuel requirements. No net heavy distillates are taken as a product, being used as a fuel or converted to other products.