NOVELTY - Liquefaction of carbonaceous material and biomass, comprises: providing or obtaining a feed mixture comprising carbonaceous material and biomass; and subjecting the feed mixture to liquefaction to provide a product slurry. The carbonaceous material comprises a nonpetroleum fossil fuel or petroleum refinery residue.    USE - The method is useful for liquefaction of carbonaceous material and biomass, used for fuel production, where the fuel comprises a liquid transportation fuel (all claimed), for producing fuel for military use including production of synthetic aviation fuels.    ADVANTAGE - The method: enables adjusting ratio of carbonaceous material and biomass, thus generates desired mixture of products; provides synthetic fuel that meets jet propellant (JP-5)/JP-8 specs or JP-5/battlefield-use fuel of the future (BUFF) specs; has smaller carbon footprint than other methods of liquefaction and other method of fuel production; provides synthetic kerosene-dominant refinery, in which the naphtha and distillate that are coproduced are easily refinable to meet final fuel specs; provides efficient refining of fuel precursors into desired fuel with less consumption of energy or valuable materials than other methods; is flexible and allows tailoring of secondary products and can accommodate different refining technology preferences; is less complex than other refining techniques; eliminates gas cleanup equipment, and reduces the overall size of the plant; and provides economic and environmental benefits to oil producers, while reducing their economic and environmental liabilities.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are also included for:    (1) producing fuel from carbonaceous material and biomass comprising performing the liquefaction of carbonaceous material and biomass method as above per se, separating the product slurry to give conversion component and processing the conversion component to give a fuel;    (2) liquefaction of coal and biomass, comprising providing or obtaining a feed mixture comprising coal and biomass, the biomass comprises plant derived oil, algae-derived oil, biomass pyrolysis oil, waste oil, yellow grease, brown grease, tar or animal fat and subjecting the feed mixture to liquefaction to provide a slurry, the liquefaction comprises contacting the feed mixture with a liquefaction catalyst and hydrogen gas at 350-500 degrees C at a pressure of 150-250 atm; and    (3) producing fuel from coal and biomass, comprising providing or obtaining a feed mixture, comprising coal and biomass, the biomass comprises plant derived oil, algae-derived oil, biomass pyrolysis oil, waste oil, yellow grease, brown grease, tar or animal fat, subjecting the feed mixture to liquefaction to provide a product slurry, distilling the product slurry to give a distillate and hydrotreating the distillate to give hydrotreated material, hydrogenating the hydrotreated material to give a hydrogenated material, isomerizing at least some of the hydrotreated material to give an isomerized material, aromatizing at least some of the hydrotreated material to give an aromatized material and blending at least some of the isomerized material and at least some of the aromatized material to give a fuel.