Development of the Catalytic hydrosolvation process for converting coal to low-sulfur fuel oil is described in this paper. Coal impregnated with catalyst was slurried with oil, and the mixture was hydrogenated at a temperature of 475°C, and 30 min residence time under 3600 psi pressure. A ton of coal yielded 3.5 bbt of fuel oil containing 0.2% sulfur, with naphtha and C1-C4hydrocarbon gases as byproducts. A preliminary economic evaluation of the process indicated potential for further development.