Found this interesting article, claiming the technology is available to cleanly produce
$55 barrel oil from coal.
Norman Roberts of Plano: We need coal | Dallas Morning News | News for Dallas, Texas | Collin County Opinions
The Department of Energy agrees. DOE has looked at designs they think can take the filthiest, lowest grade coal, cleanse it of pollutants, convert it to liquid fuels, and capture and store the resulting carbon dioxide.
The processes work well in tests, and, on a commercial scale, DOE estimates a cost equivalent to oil at about $55 per barrel. With current prices somewhere north of $130 and expected to go higher, it's time to find out if they are right. Required facilities can be brought online in a few years. Nothing else on the horizon has that potential.