In this project we intend to study a novel process concept, i.e., the use of ceramic membranes reactors in upgrading of coal derived liquids. Membrane reactors have been used in a number of catalytic reaction processes in order to overcome the limitations on conversion imposed by thermodynamic equilibrium. They have, furthermore, the inherent capability for combining reaction and separation in a single step. Thus they offer promise for improving and optimizing yield, selectivity and performance of processes involving complex liquids, as those typically found in coal liquid upgrading. Ceramic membranes are a new class of materials, which have shown promise in a variety of industrial applications. Their mechanical and chemical stability coupled with a wide range of operating temperatures and pressures make them suitable for environments found in coal liquid upgrading. In this project we will evaluate the performance of Sel-Gel alumina membranes in coal liquid upgrading processes under realistic temperature and pressure conditions and investigate the feasibility of using such membranes in a membrane reactor based coal liquid upgrading process. In addition, the development of novel ceramic membranes with enhanced catalytic activity for coal-liquid upgrading applications, such as carbon-coated alumina membranes, will be also investigated. DISCLAIMER This report was prepared as an account oi" work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Refer-¢nc_ herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise dots not necessarily constitute or imply its endorsement, recommendation, trr favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not new, essarily state or retie, ct those of the United States Government or any agency thereof.