We have synthesized nanometer sized particles of Fe, Pd, and FeS2 (pyrite) in inverse micelle solutions and tested the particles as catalysts in coal conversion processes. The synthesis procedure produces a variety of high surface area, highly dispersed, unsupported metal and metal compound catalysts. While Pd is used to test the viability of the particles formed by this synthesis technique, only disposable iron-based particles are of economic interest. The particles are prepared by reduction or chemical reaction of salts solubilized in microheterogeneous surfactant and oil solutions. Chemical manipulation produces metal powders. Particle size and composition are determined by transmission electron microscopy, electron diffraction, and UV-visible spectrophotometry. Catalysts in solution and as powders are explored in three reactions : the hydrogenolysis of naphthylbibenzylmethane, coal hydropyrolysis, and coal liquefaction. The model hydrogenolysis reaction provides information on the role of surfactant on catalytic activity. Results indicate good catalytic activity for coal hydropyrolysis and liquefaction.