U.S. Department of Energy (DOE) has been supporting an indirect coal liquefaction program aimed at developing improved technologies to convert coal based synthesis gas into economically competitive and environmentally clean hydrocarbon and oxygenate transportation fuels. A key element of this program is the development of a liquid phase reactor technology which could offer improved economics and operational flexibility over the conventional gas phase reactors. This paper will review the accomplishments of liquid phase methanol technology development at the proof-of-concept (POC) scale unit in LaPorte, Texas and the advancement of this technology to commercial demonstration which has been underway since 1993 under the support of DOE Clean Coal Technology program. The POC facility has recently been upgraded to allow for developing liquid phase reactor technologies for Fischer-Tropsch synthesis and the production of other oxygenate fuels and chemicals from synthesis gas. The upgraded POC unit, now known as the Alternative Fuels development Unit (AFDU), as well as the results of new campaigns that have been conducted al this unit will also be reviewed.