After the second oil crisis, NEDO initiated research and development in coalliquefaction as a national project under the Sun Shine Program. The goal of this projectwas to create direct coal liquefaction technologies that would be commercially viable.NEDO has been promoting a series of coal liquefaction projects, from basic research toprocess demonstration at a pilot plant. The coal liquefaction project has also focused onthe development of upgrading technologies on coal liquefied oil to raise the level of itsquality. A process development unit (PDU) was constructed to demonstrate theupgrading process. The final products obtained from the PDU are provided for end-useevaluation tests such as engine combustion performance, the capability of blending withpetroleum stocks, and storage stability. These tests are some of the most essential inintroducing the new fuel into the existing petroleum market. Based on the tests,concepts of a demonstration plant for upgrading were established and a technologypackage was compiled.
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