Lignite from Mae-Moh basin in Thailand was used as raw feed to produce value-added chemicals, especially aromatic hydrocarbons. It was found that the hydropyrolysis of Mae-Moh lignite in atmospheric pressure of hydrogen gas is suitable for aromatic hydrocarbon production. For the hydropyrolysis of Mae-Moh lignite at 600 degreesC and the heating rate of 15 degreesC/s, 15 wt.% (dry, ash-free basis; daf) of benzene, toluene and xylenes (BTX) and decalin, tetralin and naphthalene (DTN) was produced. To enhance the yield of aromatic fractions, the upgrading of coal volatile over HY zeolite at 500 degreesC was investigated. The yield of BTX and DTN was 14 wt.% (daf). The attempt was made to convert aliphatic hydrocarbons to aromatic products by reforming of aliphatic products from the above hydropyrolysis/upgrading process over H-ZSM-5 zeolite. The calculated yield of BTX and DTN after this treatment was 20 wt.% (daf). (C) 2002 Elsevier Science B.V. All rights reserved.