Canon has been developing a synchrotron radiation stepper system for x-ray lithography feasibility studies. We have developed a novel accurate alignment system using the dual grating lens (DGLs) method. In this article, we explain the principle of the DGL, and the results of the alignment accuracy and process applicability tests. We have evaluated alignment performance for translation (X, Y) and rotation (theta) at the center of every exposure area. We obtained the alignment accuracy 3 sigma of 19 nm (X), 15 nm (Y) and 0.8 mu rad (theta), using etched SiN patterns on Si substrates, and the overlay accuracy in an actual dynamic random access memory fabrication process 3 sigma of 34 nm (X), 31 nm( Y), and 2.1 mu rad (theta). After eliminating the alignment offset in each shot, the values (3 sigma) are 18 nm, 21 nm, 1.4 mu rad, respectively. These results show that the alignment method is promising for 0.15 mu m level device fabrication.