The characteristic of energy resources in China is less in oil and more in coal. The demand of high quality liquid fuels is ever increasing in China with its economic development. It is expected that the relation between supply and demand will become a serious problem in the future. By use of a new process of coal topping,which combines quick pyrolysis-quenching with a circulating fluidized bed combustor,a higher oil recovery can be obtained for young coal , and coal clean combastion will be realized. Developing a new type of pyrolysis reactor is a key step for industrialization of the new process.