A new thermochemical process for (Fischer-Tropsch) FT fuels and electricity coproduction based on steam hydrogasification is addressed and evaluated in this study. The core parts include (Steam Hydrogasification Reactor) SHR, (Steam Methane Reformer) SMR and (Fisher-Tropsch Reactor) FTR. A key feature of SHR is the enhanced conversion of carbon into methane at high steam environment with hydrogen and no need for catalyst or the use of oxygen. Facilities utilizing bituminous coal for coproduction of FT fuels and electricity with carbon dioxide sequestration are designed in detail. Cases with design capacity of either 400 or 4000 TPD (Tonne Per Day) (dry basis) are investigated with process modeling and cost estimation. A cash flow analysis is performed to determine the fuels (Production Cost) PC. The analysis shows that the 400 TPD case due to a FT fuels PC of 5.99 $/gallon diesel equivalent results in a plant design that is totally uneconomic. The 4000 TPD plant design is expected to produce 7143 bbl/day FT liquids with PC of 2.02 $/gallon and 2.27 $/gallon diesel equivalent at overall carbon capture ratio of 65% and 90%, respectively. Prospective commercial economics benefits with increasing plant size and improvements from large-scale demonstration efforts on steam hydrogasification. (C) 2012 Elsevier Ltd. All rights reserved.