This report describes research conducted to support the DOE program in development of improved (attrition resistant) catalysts for converting coal-derived synthesis gas to liquid fuels via slurry phase Fischer-Tropsch (F-T) synthesis. The primary objective of this research program is to develop highly active and selective attrition resistant iron F-T catalysts by spray drying. Texas A&M University (TAMU) and Hampton University (HU) will work together to synthesize spray dried catalysts. The synthesis of catalyst precursors, measurement of attrition properties and testing of spray dried catalysts will be performed at TAMU. Hampton University will prepare final catalysts in a bench scale spray drier unit, and provide expertise in selection of binders and their properties required to produce catalysts of high attrition strength. During the reporting period we have completed one slurry reactor test of a spray-dried catalyst synthesized at HU.