Coal-fueled diesel engines hold the promise of operating on a cheap, domestically abundant fuel in a wide range of applications. The technical challenges appear to be solvable by existing or near-term developments. The successful application of a coal-fueled diesel engine will require the simultaneous development of a fuel source, engine combustion, wear and emission control systems, and the support infrastructure in the operating environment. Recent studies show that a coal water mixture fueled diesel locomotive can be economically attractive at reasonable oil price levels.