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A significant amount of energy exists in the waste generated by the coal and timber industries. In the coal industry, the energy loss is mainly due to the discharge of fine coal to the waste impoundment. Despite the fact that the fine coal has the greatest cleaning potential, dewatering, handling and transportation concerns prevent its use as product in many cases. Likewise, the sawdust generated from wood production has energy value and is used as industrial boiler fuel when the transportation distance is relative short. However, wood waste is often discarded into cumbersome landfills due to uneconomical transportation alternatives. Recent research found that these two waste materials can be combined to provide a high energy fuel of around 13000 btu/lb that can be easily handled and transported to end users.