An ultrafine Fe metal-based catalyst system that operates in a heterogeneous/homogeneous combination mode to selectively produce mixed (C-1-C-4) alcohols from syngas is described. The Fe particles were generated via complete decomposition of Fe(CO)(5) in Ethylflo-164 hydrocarbon solvent at 225 degrees C under N-2 in under 2 h. The resulting Fe particles, though somewhat aggregated, averaged < 30 nm in mean particle diameter as determined by transmission electron microscopy. On mixing this highly dispersed Fe slurry (0.3-0.8 wt% Fe loading) with a strong base (0.4-0.8 M potassium alkoxide or potassium hydroxide) dissolved in an oxygenated solvent, CO was hydrogenated at less than or equal to 250 degrees C and < 6 MPa to selectively (up to 95%) yield C-1-C-4 alcohols over traditional hydrocarbons. Mossbauer measurements on quenched catalyst samples indicated that metallic and carbided Fe species (48% Fe, 38% gamma-Fe5C2, 14% Fe3O4) predominated in the hydrocarbon product-selective catalytic reaction, and fully oxidized Fe species (45% Fe2SiO4, 24% FeCO3, 22% Fe2O3, 9% Fe3O4) were observed under catalytic conditions that predominantly yielded oxygenates. The implication of utilizing an inexpensive Fe-based catalytic system consisting of a slurried Fe (heterogeneous) and dissolved base (homogeneous) that effects CO hydrogenation to preferentially yield C-1-C-4 mixed alcohols is discussed in relation to traditional base-doped Fe catalysts.