Abstract: Effects of liquefaction conditions, including temperature, time, initial hydrogen pressure, and catalyst dosage on direct liquefaction were investigated by batch hydro-liquefaction of Shenhua coal catalyzed by SO₄^2-/ZrO₂ solid acid. The mechanism and catalysis of Shenhua coal liquefaction catalyzed by SO₄^2-/ZrO₂ solid acid were also discussed by distribution and IR analysis of the products. The results indicate that increase in temperature is favorable for catalytic hydrocracking of coal, an increase in liquefaction conversion, and yields of oil plus gas. Raising the initial hydrogen pressure facilitates coal conversion into asphaltene and preasphaltene, but depresses the formation of oil and gas. The increase of liquefaction time is beneficial to the hydrocracking of preasphaltene with an increase in yields of oil plus gas. SO₄^2-/ZrO₂ solid acid mainly catalyzes the hydrocracking of coal macromolecular structure so that the conversion and yields of oil plus gas increase with increasing catalyst dosage. In addition, the conversion of the oxygen-containing structures such as hydroxyl needs high liquefaction temperature and initial hydrogen pressure.