This review provides an account and an evaluative assessment of techno
logical advances in the manufacture of liquid fuels from synthesis gas
(hydrogen and carbon oxides), and suggests opportunities for future r
esearch deemed promising for the installation of practical processes.
Manufacture of syngas from coal, gas or biomass is not part of this re
view. Significant progress has been achieved for synthesis of oxygenat
e and hydrocarbon fuels on all technological levels: scientific resear
ch, engineering development and pioneering plant installations. For ox
ygenate fuels, improved synthesis technology has been provided by nove
l catalysts, innovative engineering for plant simplification, and meth
odology for coproduction of chemicals and of electricity. For hydrocar
bon fuels, improvements have been achieved by utilizing fixed fluid be
d synthesis, by a novel combination of middle distillate synthesis plu
s hydrocracking and by promising slurry phase operation. The review su
mmarizes new understanding of the chemistry of syngas catalysis. Econo
mic considerations are discussed, with new emphasis on fuel performanc
e values. The main barrier to commercial production of synfuels is the
ir cost relative to gasoline from petroleum. There are opportunities t
o improve synfuel economics by technology which has the potential: (a)
to lower manufacturing cost by 10-30%; (b) to synthesize products whi
ch justify 25% higher prices (fuels of premium engine performance or c
hemical-electricity coproducts); and (c) to produce fuels with valuabl
e environmental benefits. Liquid fuels from biomass may offer a specia
l economic incentive if a future CO2 tax is imposed. Specific opportun
ities for future research, to develop new and improved technology for
oxygenate and for hydrocarbon fuels, are suggested in terms of technic
al objectives and potential benefits. Promising research concepts are
indicated, based on research advances discussed herein.