Under the cooperative agreement program of DOE and funding from Wyoming State?s Clean Coal Task Force, Western Research Institute and Thermosolv LLC studied the direct conversion of Wyoming coals and coal-lignin mixed feeds into liquid fuels in conditions highly relevant to practice. During the Phase I, catalytic direct liquefaction of sub-bituminous Wyoming coals was investigated. The process conditions and catalysts were identified that lead to a significant increase of desirable oil fraction in the products. The Phase II work focused on systematic study of solvothermal depolymerization (STD) and direct liquefaction (DCL) of carbonaceous feedstocks. The effect of the reaction conditions (the nature of solvent, solvent/lignin ratio, temperature, pressure, heating rate, and residence time) on STD was investigated. The effect of a number of various additives (including lignin, model lignin compounds, lignin-derivable chemicals, and inorganic radical initiators), solvents, and catalysts on DCL has been studied. Although a significant progress has been achieved in developing solvothermal depolymerization, the side reactions ? formation of considerable amounts of char and gaseous products ? as well as other drawbacks do not render aqueous media as the most appropriate choice for commercial implementation of STD for processing coals and lignins. The trends and effects discovered in DCL point at the specific features of liquefaction mechanism that are currently underutilized yet could be exploited to intensify the process. A judicious choice of catalysts, solvents, and additives might enable practical and economically efficient direct conversion of Wyoming coals into liquid fuels.