This report covers the first year of this three-year research grant under the University Coal Research program. The overall objective of this project is to develop a comprehensive kinetic model for slurry phase Fischer-Tropsch synthesis on iron catalysts. This model will be validated with experimental data obtained in a stirred tank slurry reactor (STSR) over a wide range of process conditions. The model will be able to predict concentrations of all reactants and major product species (H{sup 2}O, CO{sub 2}, linear 1- and 2-olefins, and linear paraffins) as a function of reaction conditions in the STSR. During the reporting period we have completed one STSR test with precipitated iron catalyst obtained from Ruhrchemie AG (Oberhausen-Holten, Germany). This catalyst was initially in commercial fixed bed reactors at Sasol in South Africa. The catalyst was tested at 13 different sets of process conditions, and had experienced a moderate deactivation during the first 500 h of testing (decrease in conversion from 56% to 50% at baseline process conditions). The second STSR test has been initiated and after 270 h on stream, the catalyst was tested at 6 different sets of process conditions.