As a new fluid fuel to replace oil, water coal mixture is a high and new technical product developed after world petroluem crisis, is a new member in fuel family. Water coal mixture uses coal and charcoal with rich reserves and low price as main raw material, it is made from the mixture by adding 27~35% water and 1% chemical additive after polising and refining. Like petroluem, it flows, can be transferred by pump and atomized for combustion, its heat value is only a half of the one of petroleum, whereas combustion rate is improved from 60% to 90% or more, is higher than coal burning. With characteristics of high combustion efficiency, good fluidity, easy transportation, good performance to store, safe use and others, water coal mixture can be used wildly for industrial boiler, civil boiler, thermal medium boiler and power station boiler. Water coal mixture is a project to be developed by our State, having good market development prospect.