Abstract: Apparatus and method for reacting coal with hydrogen to provide hydrocarbon products. In a container having an anode and a cathode spaced therefrom, an electric potential about 200 to 1000 volts more positive than the potential at the cathode is applied to the anode to provide an electric arc at a current density of about 0.01 to 100 amperes per square centimeter in a reaction zone between them comprising hydrogen at a pressure of about 10 to 500 millimeters of mercury, and thus to maintain a plasma therein. A magnetic field of about 100 to 1000 gauss is provided approximately perpendicular to the arc. Hydrogen is directed into contact with the anode (as through passages therein) and from there into the reaction zone to ionize a substantial portion of the hydrogen positively, while coal is directed either in a slurry or as a fine powder, into contact with the cathode (as through passages therein) and from there into the reaction zone to charge a substantial portion of the coal with a negative potential.