Abstract: A method of preparing a sulfur-containing composite fuel is provided to utilize some high-sulfur content solid and semi-solid fuels such as tar sand coke and refinery tank sludges by reducing their sulfur emission on combustion. The method comprises the steps of making an aqueous slurry including a finely divided carbonaceous material, a comminuted sulfur capture agent and an oily agglomeration aid obtained from the refinery or tailing sludges and coagglomerating these components and an optional conditioning agent. The resulting agglomerated composite fuel has a reduced content of inorganic impurities and is suitable for fluidized-bed combustion.