The results of Laboratory and Bench-Scale experiments and supporting technical and economic assessments conducted under DOE Contract No. DE-AC22-91PC91040 are reported for the period April 1, 2001 to June 30 2001. This work involves the introduction into the basic two-stage liquefaction process several novel concepts, which include dispersed lower-cost catalysts, coal cleaning by oil agglomeration, and distillate hydrotreating and dewaxing. This project has been modified to include an investigation into the production of value added materials from coal using low-severity liquefaction based technologies