As oil deposits are limited, it is very important to develop techniques for manufacturing petroleum alternatives as substitute energy sources to brighten the outlook for the future. The Research Association for Petroleum Alternatives Development (RAPAD) in Japan is engaged in the research and development of production techniques for light hydrocarbon oils such as gasoline, kerosene, and light oil from synthesis gas (CO, H/sub 2/) obtained from the raw materials of natural gas, coal, etc. Regarding the MTG process of synthesizing gasoline via methanol from synthesis gas and the STG process of directly synthesizing gasoline from synthesis gas, Cosmo Oil Co., Ltd. and Mitsubishi Heavy Industries, Ltd., members of RAPAD, have sought jointly to develop catalysts and processes. As a result of this co-operation, the authors have recently succeeded in developing a new catalyst with a long life span capable of providing a high yield and high selectivity. Additionally, the authors are currently on the verge of putting into effect a unique two-step STG process of synthesizing high octane gasoline via dimethyl ether, referred to as the AMSTG process.