The Department of Chemical Technology at the Royal Institute of Technology has completed a system study concerning direct liquefaction of peat and biomass to produce transportation fuel. A comprehensive survey of coal liquefaction is included. Gasoline produced in Sweden from direct liquefaction of imported coal may compete with regular gasoline at the earliest around 1985. Biomass can become a competitive alternative to black coal at the beginning of the 21st century. Methanol can be produced from wood with a higher efficiency than the transportation fuels which are produced by direct liquefaction. The peat is not good source for liquefaction as wood chips. A continuously working liquefaction plant designed also for peat among other substances is under construction at the Royal Institute of Technology, Stockholm.