Abstract: Coal is subjected to a pyrolysis process which produces an oil fraction, a char, a water fraction, and a gas by-product. The oil fraction may be desulphurized, and the ash and sulphur removed from the char by micronizing the char and using known methods to separate the carbon from the ash and sulphur. The liquid oil fraction, micronized char, and water fraction are combined and blended with or without a stabilizing agent to form a clean-burning, low sulphur liquid fuel suspension which can be transported in pipes or in bulk, and stored. A stabilizer can be applied to the blend in order to increase its stability. Common fuel oil may also be added to the resulting liquid fuel without danger of separation. When the char is micronized to less than 200 standard mesh, at least 50% by weight of the entire suspension can be the char.