Converting coal into oil using the Fischer-Tropsch process was first done on a large scale by Hitler in World War II, when Germany was cut off from global oil supplies.

January 26, 2008

* Coal - new technologies hold promise of a coal renaissance

* Coal liquification - 30% of South African petrol and diesel

* Coal liquefaction - potential for significant air quality improvements compared to petrol

July 25, 2005

SASOL's CTL technology is competitive with oil at $25-40/bbl

Converting coal to oil could become a multibillion-dollar business. A South African company, SASOL, has operated coal-to-liquid plants since the 1950s. The company has steadily improved the technology, but produced costly oil at well above global rates, justified only on national security grounds. With the price of oil today, SASOL's plants are highly profitable. And with OPEC now seeming to favor a price target of $40-50/bbl, investment in coal-to-liquid plants is attractive. Four leading industrial groups in India -- Jindal, Essar, Tatas and Bhushan -- have had exploratory talks with SASOL.