Over the remaining years of this century synthetic fuels will play a key role in the nation's drive for energy independence. Although self-reliance is indeed a desirable goal, many people believe it cannot be achieved without significant compromises in environmental quality. This may not be the case. One synfuel, methanol, could be used to replace both gasoline and diesel fuel and yield environmental benefits. This paper compares methanol with synthetic fuels from other coal liquefaction processes in terms of the environmental and economic consequences of their use.