Steam gasification of blends prepared from Balraer coal and the ash from combustion of Onakawana lignite was performed in a fixed bed reactor. The blends were prepared by co-slurrying followed by drying. In the presence of 20 wt % ash the gasification rate doubled at 830° and 930°C. Direct blending of coal and lignite resulted In an overall increase in carbon conversion at 830°C but had no effect at 930°C.