Continued reliance on oil is unsustainable and this has resulted in interest in alternative fuels. Coal-to-Liquids (CTL) can supply liquid fuels and have been successfully used in several cases, particularly in South Africa. This article reviews CTL theory and technology. Understanding the fundamental aspects of coal liquefaction technologies are vital for planning and policy-making, as future CTL systems will be integrated in a much larger global energy and fuel utilization system. Conversion ratios for CTL are generally estimated to be between 1-2 barrels/ton coal. This puts a strict limitation on future CTL capacity imposed by future coal production volumes, regardless of other factors such as economics, emissions or environmental concern. Assuming that 10% of world coal production can be diverted to CTL, the contribution to liquid fuel supply will be limited to only a few Mb/d. This prevents CTL from becoming a viable mitigation plan for liquid fuel shortage on a global scale. However, it is still possible for individual nations to derive significant shares of their fuel supply from CTL, but those nations must also have access to equally significant coal production capacities. It is unrealistic to claim that CTL provides a feasible solution to liquid fuels shortages created by peak oil. For the most part, it can only be a minor contributor and must be combined with other strategies.
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