NOVELTY - Producing liquid fuels, comprises gasifying a starting material comprising coal, biomass and/or carbon nanotubes to produce a syngas, subjecting syngas to Fischer-Tropsch synthesis (FTS) to produce a hydrocarbon product stream, separating the stream into 1-4C hydrocarbons and C5+ hydrocarbons used as liquid fuels, subjecting 1-4C hydrocarbons to catalytic dehydrogenation to produce hydrogen and carbon nanotubes and recycling the hydrogen to mix with the syngas produced in the gasifier to yield a syngas with a hydrogen to carbon monoxide ratio of 2 or higher for FTS of liquid fuels.    USE - The method is useful for producing liquid fuels (claimed).    ADVANTAGE - The method is accomplished with little or no production of carbon dioxide, a greenhouse gas. The carbon is captured in the form of a potentially valuable by-product, multi-walled carbon nanotubes, while huge emissions of carbon dioxide are avoided and very large quantities of water employed for the water-gas shift in traditional FTS systems are saved. The method is economical and produces fuels that increase energy diversity, burn cleanly and exhibit improved environmental performance.    DETAILED DESCRIPTION - An INDEPENDENT CLAIM is included for a liquid fuel production facility (10), comprising a gasification unit (12) to produce a syngas from a starting material comprising coal, biomass and/or carbon nanotubes, a Fischer-Tropsch unit (14) downstream from the gasification unit to produce a hydrocarbon product stream from the syngas, a catalytic dehydrogenation unit (18) downstream from the separator unit to produce hydrogen gas and carbon nanotubes from the 1-4C hydrocarbons and a mixing unit (20) downstream from the gasifier and the catalytic dehydrogenation unit which uniformly mixes hydrogen from the catalytic dehydrogenation unit and syngas from the gasification unit to produce modified syngas with significantly enhanced hydrogen/carbon monoxide ratios.    DESCRIPTION OF DRAWING(S) - The figure shows schematic block diagram of the liquid fuel production facility.    Liquid fuel production facility (10)    Gasification unit (12)    Fischer-Tropsch synthesis unit (14)    Catalytic dehydrogenation unit (18)    Mixing unit. (20)